Bayer receives EU approval for Schering acquisition
The European Commission has unconditionally approved Bayer's proposed acquisition of Schering. The decision leaves Bayer free to complete the deal, with clearance having been obtained in the US on 21 April, as long as the minimum acceptance threshold of 75% of Schering shares is reached by 31 May. The combined company will operate under the name 'Bayer-Schering-Pharma" and be headquartered in Berlin, Germany.
The European Commission has unconditionally approved Bayer's proposed acquisition of Schering. The decision leaves Bayer free to complete the deal, with clearance having been obtained in the US on 21 April, as long as the minimum acceptance threshold of 75% of Schering shares is reached by 31 May. The combined company will operate under the name 'Bayer-Schering-Pharma" and be headquartered in Berlin, Germany.
Bayer's offer of Euro 86 per Schering share - which represents a total transaction value of around €16.5bn - is approximately 61% above the unweighted 12-month average price and 39% above the closing price before the first takeover rumuors surfaced. "It is thus worthwhile for Schering shareholders to accept our offer," said Werner Wenning, chairman of the Bayer Management Board.
The executive and supervisory boards of Schering have called the pharmaceutical businesses of Bayer and Schering "complementary..with a focus on specialty healthcare products", and believe the union will "form an important pharmaceutical company which will be in an even better position to compete in the global market".