. . .The Sanofi-Merial-Merck/Intervet Animal Health JV Termination -- announced on Tuesday -- and now filed with the SEC, as a Form 8-K material development (full termination agreement, as an exhibit there), likely means that more legacy Schering-Plough/Intervet Animal Health employees will be able to keep their jobs, and careeers.
Net, net -- there will be no new jobs, but it is less likely that Intervet will slash heads by combining businesses on the scale once contemplated, under the New Merial Joint Venture Call Option (since abandoned). However, as Reuters points out, and our commenters note, smaller "bolt-on" acquisitions, in Animal Health, at Pfizer, Sanofi, Merck and Eli Lilly, among others -- should be expected, with those "bolted on" to be the most vulnerable to layoffs:
. . . .Sanofi-Aventis aims to expand its animal health business through small acquisitions, the drugmaker's head said after plans collapsed to create the world's top joint venture in that area with Merck. . . .
Sanofi and Merck on Tuesday dropped plans to merge Sanofi's pet-focused Merial unit, which they once jointly owned, with Merck's bigger, livestock-oriented Intervet business, a venture that would have had sales of some $5 billion. . . .
The companies blamed the complexity of selling assets to placate regulators, adding that they both remained committed to their animal health businesses, which for Sanofi generated annual 2010 sales of $2.6 billion.
"Bolt-ons are going to be easier" than large acquisitions, Viehbacher said, citing competition issues in the increasingly consolidating industry. . . .
Indeed -- a mildly positive sign for the rank and file; we will keep you posted.