Swiss pharma major Novartis today said it will buy a 52 per cent stake in eye care firm Alcon for an estimated $28.1 billion.
Novartis already has a 25 per cent shareholding in the company, which it had bought for $10.4 billion in 2008.
With the purchase of a majority stake, the total shareholding of Novartis in the eye care firm would be 77 per cent.
The Swiss firm in a statement said that it would acquire the 52 per cent stake in Alcon from Nestle, for $180 per share or about $28.1 billion.
Earlier in 2008, Novartis had bought 25 per cent stake in Alcon from Nestle for about $10.4 billion which include an option to buy additional 52 per cent stake from the company.
"...Together, these transactions (buying 25 per cent and 52 per cent stake, respectively) are estimated to cost about $38.5 billion, and at an average cost of $168 per share," the statement noted.
Subject to regulatory approvals, Novartis' acquisition of 52 per cent stake is expected to complete in the second half of 2010.
The purchase would be funded with available liquidity and external debt financing, it said.
"The addition of Alcon will strategically strengthen our healthcare portfolio and our position in eye care, a sector with dynamic growth due to the increasing patient needs of an aging population," Novartis Chairman and CEO Daniel Vasella said.
Alcon and Novartis have which has presence in India, together cover more than 70 per cent of the global vision care sector.
