Sanofi-aventis and Merck & Co., Inc. have announced that the companies have signed a definitive agreement under which Merck will sell its 50 percent interest in Merial Limited (Merial), to Sanofi-aventis for US$4 billion in cash.
Formed in 1997, Merial is a leading animal health company that is a 50/50 joint venture between Merck and Sanofi-aventis. Following the close of the transaction, Sanofi-aventis will own 100 percent of Merial.
In addition to the Merial agreement, Merck, Sanofi-aventis and Schering-Plough announced the signing of a call option agreement. Under the terms of the call option agreement, following the closing of the Merck/Schering-Plough merger, Sanofi-aventis would have an option to combine the Intervet/Schering-Plough Animal Health business with Merial to form an animal health joint venture that would be owned equally by the new Merck and Sanofi-aventis.
The possible combination would create a new leader in the US$19 billion global animal health market, said Christopher A. Viehbacher, Chief Executive Officer of Sanofi-aventis
The sale of Merck's interest in the Merial joint venture is subject to clearance by the European antitrust authorities. Merck said it anticipates completing the transaction before its planned merger with Schering-Plough is finalised, which is expected to occur during the fourth quarter of 2009.
The companies said Merial and Intervet/Schering-Plough Animal Health will continue to operate independently until the closing of any potential combination of Merial and Intervet/Schering-Plough Animal Health.
Merck & Co., Inc. is a global research-driven pharmaceutical company dedicated to discovering, developing, manufacturing and marketing vaccines and medicines to address unmet medical needs.
Sanofi-aventis, a leading global pharmaceutical company, discovers, develops and distributes therapeutic solutions.
Merial is a leading animal health company, providing a comprehensive range of products to enhance the health, well-being and performance of a wide range of animals.
