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Strategies & Market Trends : Speculating in Takeover Targets
CTG 7.840+0.4%Aug 12 4:00 PM EDT

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To: richardred who wrote (3538)9/22/2014 8:41:58 AM
From: richardred   of 6364
 
Merck of Germany makes it's move on a merger Monday. SIAL, One of my past moneymakers



Merck of Germany to Acquire Sigma-Aldrich for $17 Billion
By Chad Bray September 22, 2014 6:31 amSeptember 22, 2014 6:31 am

LONDON – Merck of Germany said on Monday that it had agreed to acquire the life sciences company Sigma-Aldrich for $17 billion.

The deal is expected to increase Merck’s presence in North America and give it added exposure to markets in Asia.

Merck, the German chemical and pharmaceutical company, will acquire all of the outstanding shares of Sigma-Aldrich for $140 a share in cash, representing a 37 percent premium on the company’s closing price from Friday. The deal values Sigma Aldrich at about $17 billion.

Merck described the transaction as a “quantum leap” for its life sciences business.

“The combination of Merck and Sigma-Aldrich will secure stable growth and profitability in an industry that is driven by trends such as the globalization of research and manufacturing,” Karl-Ludwig Kley, Merck’s executive chairman, said in a statement.

Merck, based in Darmstadt, Germany, expects to achieve annual cost savings of about 260 million euros, or about $333 million, within three years of completing the deal.

Sigma-Aldrich’s board of directors has unanimously approved the deal, which requires shareholder and regulatory approval.

The transaction is expected to close in mid-2015.

Sigma-Aldrich, based in St. Louis, Mo., produces more than 230,000 chemicals and other products that are used in research and a variety of industrial and commercial sectors. It posted sales of $2.7 billion in 2013 and employs about 9,000 people in 37 countries worldwide.

Merck, which operates under the EMD brand in the United States and Canada, manufactures products for the pharmaceutical and chemical sectors. It posted revenue of about €11.1 billion in 2013 and employs about 39,000 people in 66 countries worldwide.

Guggenheim Securities and JPMorgan Chase and the law firm Skadden, Arps, Slate, Meagher & Flom advised Merck, while Morgan Stanley and the law firm Sidley Austin acted as advisers to Sigma-Aldrich.


dealbook.nytimes.com
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