Publications
Partners
Basel - Swiss pharmaceutical giant Roche said on Thursday it has sealed a friendly deal to take full control of its US biotechnology unit Genentech after increasing the offer price to $95 a share.
In a joint statement released by Roche, which already holds nearly 56% of Genentech, the Swiss company said it will pay $46.8bn for the remaining shares as a result of raising its offer price to $95 from $93.
Genentech's board of directors recommended acceptance of the offer, which is valid until March 25.
"We believe this is a fair offer for Genentech shareholders and the Committee is pleased to come to a successful conclusion of this process" said Charles Sanders, chairperson of the special Committee of Genentech's board.
Roche said the deal was positive for shareholders in both companies.
The merged entity will be ranked seventh in the US market, with annual sales of $17bn and some 17 500 employees.
Roche made a first bid for full control of Genentech in July last year but its offer was rebuffed then as too low at $89 per share.
Roche, which bought into Genentech in 1990, said it expected the deal would generate annual pre-tax savings of between $750m and $850m.
- AFP
