Pounds 6.3bn deal leaves SmithKline at altar
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.NEW YORK - American Cyanamid, the US drugs group that planned to swap assets with SmithKline Beecham last month, has agreed instead to merge with American Home Products in a deal worth dollars 9.7bn ( pounds 6.3bn), writes Larry Black.
The dollars 101-a-share agreement came a day after Cyanamid let a one-day offer of dollars 100 a share from American Home expire.
But executives said the unusual take-it-or-leave-it offer, worth dollars 5 a share more than its previous hostile tender price, had pushed Cyanamid to reopen talks.
Cyanamid had tried to find a 'white knight' to help it ward off advances by American Home, a consumer products conglomerate, and said on Tuesday it had received two expressions of interest. But it also invited American Home to improve its offer before a planned meeting of directors on Tuesday, expected to approve the swap of assets with SmithKline.
The exchange would have seen SmithKline receive prescription drug and consumer- brand businesses in return for transferring its vaccine and animal health businesses to Cyanamid.
SmithKline recently acquired Diversified Pharmaceutical Services, a pharmacy benefit manager, for dollars 2.3bn, and is looking for additional drug products to channel through its expanded distribution network.
American Home is about twice the size of Cyanamid and the combined group will have annual revenues of more than dollars 12.5bn, with products ranging from drugs to healthcare products, food, vaccines and chemicals.
American Home Products makes over-the-counter drugs such as Advil and Anacin, as well as Chap Stick and tinned pastas.
Cyanamid is strong in vaccines and drugs, and also has a presence in agricultural products such as pesticides.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments