Merck wins final approval from Brazil to buy Sigma-Aldrich for US$17bn

Published: 11-Aug-2015

Still needs to sell parts of Sigma-Aldrich's solvents and inorganics business in Europe

Merck's planned US$17bn acquisition of US-based life science company Sigma-Aldrich has been given the green light to go ahead.

Unconditional approval from Brazil’s Council for Economic Defense (CADE), which was the final outstanding country, has now been received. It follows recent antitrust approvals from the competition authorities of Israel (IAA) and South Korea (KFTC).

Merck expects the deal to be completed in the third quarter of 2015, although closure is still subject to the commitments made to the European Commission, following its conditional approval of the transaction on 15 June. As a result, Merck and Sigma-Aldrich have agreed to sell parts of Sigma-Aldrich’s solvents and inorganics business in Europe.

'Securing antitrust approvals in all relevant jurisdictions brings us very close to our big goal: transforming the life science industry with an enhanced product portfolio, greater capabilities and a broader geographic reach,' said Bernd Reckmann, Member of the Executive Board of Merck. 'We are now working with all related parties on the divestments as agreed with the European Commission in order to swiftly complete the transaction.'

Securing antitrust approvals in all relevant jurisdictions brings us very close to our big goal

Merck and Sigma-Aldrich announced that they had entered into a definitive agreement under which Merck would acquire Sigma-Aldrich for $17bn (€13.1bn) on 22 September 2014.

The deal will establish one of the leading players in the $130bn global life science industry.

The acquisition is a key element in Merck’s Fit for 2018 programme aimed at strengthening the company’s three growth platforms: healthcare, life science and performance materials.

The combined company will serve the global life science industry with established brands and an efficient supply chain that can support the delivery of more than 300,000 products.

In the Laboratory & Academia business, together Merck’s existing life science business, the combined company will offer a complementary range of products across laboratory chemicals, biologics and reagents. In pharma and biopharma production, Sigma-Aldrich will complement Merck Millipore’s existing products and capabilities with additions along the entire supply chain of drug production and validation.

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