Lonza pulls out of Patheon bid
Lonza Group has withdrawn its US$460m offer for Patheon of Canada.
Lonza Group has withdrawn its US$460m offer for Patheon of Canada.
The Swiss supplier to the pharmaceutical and life science industries cited the cost, the rejection of the proposal by Patheon's majority shareholder JLL and the availability of possible alternatives as the reasons for the withdrawal.
US private equity firm JLL, which owns 57% of Patheon, had already opposed Lonza's bid of US$3.55 per share, offered last month.
Patheon said the two companies were unable to agree acceptable terms for such a transaction, in spite of the special committee of independent directors extending the deadline for discussions and stating that it believed the Lonza proposal was in the best interests of Patheon and all its shareholders.
Lonza said it continues to believe that entry into the formulation contract manufacturing business fits within its current growth strategy.
The two companies have also agreed to terminate discussions regarding other strategic options that would not involve the sale of JLL's shares.