Sanofi-Aventis Completes Acquisition Of Merck’s Interest In Merial

Sanofi-Aventis and Merck have reported that the acquisition by Sanofi-Aventis of Merck’s 50% interest in Merial has been completed.

Sanofi-aventis acquired Merck’s interest in Merial for a cash consideration of $4 billion. As per the terms of the agreement signed on July 29, 2009, Sanofi-Aventis also has an option, following the closing of the Merck/Schering-Plough merger, to combine the Intervet/Schering-Plough Animal Health business with Merial to form an animal health joint venture that would be equally owned by the new Merck and Sanofi-Aventis.

Reportedly, if the option is exercised by Sanofi-Aventis, the formation of the new animal health joint venture would be subject to approval by the relevant competition authorities. The acquisition of Merial is expected to be accretive to Sanofi-Aventis’ adjusted net income from the first year.

Richard Clark, chairman, president and CEO at Merck, said: “The sale of Merck’s interest in Merial allows us to remain on track for the closing of our merger with Schering-Plough in the fourth quarter, as planned.”