30 July 2009

Sanofi-Aventis buys out Merck joint venture

Pharmaceuticals company Sanofi-Aventis will pay $4 billion to drugmaker Merck & Co. Inc. for its share of the two companies’ joint venture, Merial.

Earlier this year, Merck said it wanted to sell its 50% stake in Merial in order to assure antitrust regulatory approval of its merger with Schering-Plough, which also has a similar veterinary health care business.

Merck’s chairman Richard Clark said the deal “should enable us to proceed expeditiously with the closing of our merger with Schering-Plough in the fourth quarter as planned.”

Sanofi-Aventis will own all of Merial, a joint venture it set up with Merck in 1997.

Once Merck and Schering-Plough complete their merger, Sanofi-Aventis has the option of combining Merial with Schering-Plough’s animal health business in a joint venture owned by Sanofi-Aventis and the new Merck, the companies said.

Sanofi-Aventis Chief Executive Christopher Viehbacher said the potential combination would “create a new leader in this $19 billion global animal health market.”

The Sanofi-Aventis, Merck deal should close in the fourth quarter, company officials said.

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