Drugs and chemicals maker Merck KGaA agreed on Monday to acquire US-based Sigma-Aldrich Corp for $17 billion in cash to boost its lab supplies business, the biggest takeover in the German group's history.
The deal helps Merck, 70 per cent controlled by the descendants of its 17th century founder, to focus more on supplying drugmakers and academic institutions with chemicals and services, seen as offering a steadier income stream than drug development.
"With this acquisition we have the opportunity to turn one of our most reliable businesses into a core earnings contributor," said finance chief Marcus Kuhnert.
Merck, which has been hit by several drug development failures, said it was happy for its own pharmaceuticals business to remain a medium-sized entity.
