The below snippet comes from a ForExYard.com interview transcript, out of London, overnight.
Do go read it all, but I think the wrinkles, here, are going to be how much of either entity's businesses will need to be divested to clear European, and to a lesser extent, United States antitrust review -- but it sure sounds like Sanofi will exercise its call option within the alloted 100 days, post merger close:
. . . .Once Merck closes its deal with Schering, Sanofi CEO Chris Viehbacher said, "there is a likelihood" his company would move to combine with the Intervet animal health business that Schering-Plough is bringing into the new Merck.
"If there's an opportunity to do it, I think it makes sense to create a world leader in animal health," Viehbacher said in an interview, calling it an "area of sustainable growth. . . ."
"If we can in a second step merge Merial with Schering/Intervet, then you would create a business that basically covers everything," Viehbacher said.
Sanofi has 100 days after the close of the Merck/Schering-Plough merger to exercise its option, which would create an enormous player in the $19 billion global animal health market.
Viehbacher noted that Merck can decline to enter into the venture, but would have to pay Sanofi a breakup fee of $400 million. "So that might influence their decision," he said. . . .
I bet New Merck CEO Clark won't want to pay any termination fee, when he might instead "buy back into" the newly-combined Intervet/Merial businesses as a 50-50 JV partner -- owning a half-stake in what will arguably be the world's largest Animal Health businesses concern. But what do I know?
This is how a September 24, 2009 investor presentation (by Merck) laid it all out -- at Slide 11 (click to enlarge):
Question: How long (after the above) until Miles White, and Abbott, surface?
No comments:
Post a Comment