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