P&G to ac­quire Merck In­dia busi­ness for Rs 1,300Cr

BioSpectrum (India) - - FINANCE NEWS -

Proc­ter & Gam­ble Co. will buy a ma­jor­ity stake in Merck Ltd, the In­dian pub­licly traded unit of the Ger­man drug maker, for Rs 1,289.88 crore, as part of a global trans­ac­tion to ac­quire Merck KGaA’s in­ter­na­tional con­sumer health busi­ness for $4.2 bil­lion.

P&G will ac­quire a 51.8 per cent stake in Merck Ltd, a move that will re­quire the Amer­i­can con­sumer goods com­pany to make a manda­tory of­fer to buy at least 26 per cent stake from pub­lic share­hold­ers.

The ac­qui­si­tion will en­able P&G to ex­pand its con­sumer health­care busi­ness by adding a port­fo­lio of physi­cian-sup­ported brands, com­ple­ment­ing its own brands such as Vicks, Me­ta­mu­cil, Pepto-Bis­mol, Crest and Oral-B.

In In­dia, Merck’s con­sumer health busi­ness is one of the largest in sup­ply­ing vi­ta­mins, min­er­als and sup­ple­ments, with prod­ucts such as Neu­ro­bion, Poly­bion and Evion.

For the In­dian busi­ness, it has been agreed that P&G will ac­quire Merck’s ma­jor­ity share­hold­ing in Merck Ltd (In­dia), a pub­licly traded com­pany, and sub­se­quently make a manda­tory ten­der of­fer to mi­nor­ity share­hold­ers.

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