American pharmaceutical company Schering-Plough will acquire Dutch veterinary company Intervet, the companies announced last Sunday.
Combining the world’s third largest veterinary company (Intervet) and the fifth (SP), the acquisition will create the world’s largest veterinary company, according to Akzo Nobel’s media officer Tim van der Zanden.
The acquisition is part of a larger deal in which Schering Plough will buy Organon BioSciences, the pharmaceutical division of chemical company Akzo Nobel, of which Intervet is one part. In total, SP has made an offer of about €11 billion.
The new company’s animal health headquarters will be based in Boxmeer, the Netherlands, currently the home of Intervet.
Both companies will remain functioning under their own names – brands will not disappear for now.
Van der Zanden said negative consequences were hardly present. “We are not talking about a slicing and cutting deal. What we are looking for is growth. This way, Schering-Plough can become bigger in Europe and Intervet can grow further in the US.”
As the deal was made rather quickly and unexpectedly over the weekend, further details yet have to be released.
Parties expect that the transaction could be completed in the second half of the year, after consultation with social partners, and clearance from regulatory bodies.
Last year, Akzo Nobel already announced it envisaged a separation of Akzo Nobel and Organon.