European Commission has given its approval for Merck’s planned acquisition of US-based life science company Sigma-Aldrich. The EU clearance, which is subject to certain conditions, follows the recent antitrust approvals in Japan (JFTC) and by the Chinese Ministry of Commerce (MOFCOM). In addition, Merck has already secured antitrust clearance from the US, Taiwan, South Africa, Russia, Serbia and Ukraine.
In September 2014, Merck had signed a definitive agreement to acquire Sigma-Aldrich for $17 billion (Euro 13.1 billion), establishing the company as one of the leading players in the $130 billion global life science industry. The acquisition is a key element in Merck’s ‘Fit for 2018’ transformation and growth program aimed at strengthening the company’s three growth platforms, healthcare, life science and performance materials.
“Those approvals are very important as we are working toward completing the acquisition of Sigma-Aldrich, and we remain excited about the transformational opportunities this acquisition will create for Merck in life science. We will now work with all related parties in the coming months to swiftly implement the commitments that have been agreed with the EU,” said Bernd Reckmann, member of the Executive Board of Merck.
As part of the EU commitments, Merck and Sigma-Aldrich have agreed to sell parts of Sigma-Aldrich’s solvents and inorganics business in Europe. These include its manufacturing assets in Seelze (Germany), where most of the solvents and inorganics sold by Sigma-Aldrich in Europe are manufactured. In addition, the divestiture of solvents and inorganics sold by Sigma-Aldrich worldwide under the Fluka, Riedel-deHaen and Hydranal brands as well as a temporary license to the Sigma-Aldrich brand for the supply of solvents and inorganics in the European Economic Area have been agreed. The commitments also include the transfer of customer information and a solution to ensure a temporary channel to the market.
Based on the recent clearances, Merck said it will continue to work toward a mid-2015 completion of the transaction as detailed on the occasion of Merck’s first-quarter earnings release on May 19, 2015. The closing remains subject to certain other conditions, including remaining antitrust clearances from Brazil’s Council for Economic Defense (CADE) as well as from the competition authorities of Israel (IAA) and Korea (KFTC). Merck will continue to closely cooperate with the relevant antitrust authorities.
In September 2014, Merck had signed a definitive agreement to acquire Sigma-Aldrich for $17 billion (Euro 13.1 billion), establishing the company as one of the leading players in the $130 billion global life science industry. The acquisition is a key element in Merck’s ‘Fit for 2018’ transformation and growth program aimed at strengthening the company’s three growth platforms, healthcare, life science and performance materials.
“Those approvals are very important as we are working toward completing the acquisition of Sigma-Aldrich, and we remain excited about the transformational opportunities this acquisition will create for Merck in life science. We will now work with all related parties in the coming months to swiftly implement the commitments that have been agreed with the EU,” said Bernd Reckmann, member of the Executive Board of Merck.
As part of the EU commitments, Merck and Sigma-Aldrich have agreed to sell parts of Sigma-Aldrich’s solvents and inorganics business in Europe. These include its manufacturing assets in Seelze (Germany), where most of the solvents and inorganics sold by Sigma-Aldrich in Europe are manufactured. In addition, the divestiture of solvents and inorganics sold by Sigma-Aldrich worldwide under the Fluka, Riedel-deHaen and Hydranal brands as well as a temporary license to the Sigma-Aldrich brand for the supply of solvents and inorganics in the European Economic Area have been agreed. The commitments also include the transfer of customer information and a solution to ensure a temporary channel to the market.
Based on the recent clearances, Merck said it will continue to work toward a mid-2015 completion of the transaction as detailed on the occasion of Merck’s first-quarter earnings release on May 19, 2015. The closing remains subject to certain other conditions, including remaining antitrust clearances from Brazil’s Council for Economic Defense (CADE) as well as from the competition authorities of Israel (IAA) and Korea (KFTC). Merck will continue to closely cooperate with the relevant antitrust authorities.