October 5, 2010
Sanofi and Merck plan to sell animal health asset worth US$1 billion
Sanofi-Aventis SA and Merck & Co. plan to sell animal-health assets valued at about US$1 billion after agreeing to combine their veterinary-medicine businesses this year.
Morgan Stanley, which is advising on the sale, has sent out documents to prospective buyers, which include Pfizer Inc., Bayer AG, Boehringer Ingelheim GmbH, Eli Lilly & Co. and Novartis AG, according to inside sources. The process is still at an early stage and probably won't get under way until later this year, they said.
The combined venture, which would create the world's largest animal-health business, will have annual sales of about US$5.3 billion before any divestments, Chris Viehbacher, Sanofi's chief executive officer said. The transaction would close in the first quarter of next year, he said.
