Aventis Pharma surged by nearly 8% in morning trade on the bourses today after the company said it has entered into a definitive agreement to acquire Universal Medicare's business of marketing and distribution of branded nutraceutical formulations in India.
Following the announcement, Aventis' counter saw good buying support and the stock spurted by 7.92% to touch an early high of Rs 2,199.90 on the BSE.
A similar trend was seen on the NSE, where the stock zoomed up by 7.44% to an early high of Rs 2,195.
Aventis Pharma, in a regulatory filing to the BSE, said with this acquisition, the company will advance its sustainable growth strategy in India. It will also facilitate the creation of a consumer healthcare and wellness platform.
The transaction is expected to close in the fourth quarter of 2011, subject to certain conditions being fulfilled, it said.
Under the proposed transaction, Universal Medicare will manufacture the products that Aventis Pharma will be acquiring on mutually agreed terms.
