Sanofi, Merck Create Largest Animal Health Company

March 9, 2010
The combined business would hold 29% of the market with sales of about $5.3 billion, making it the leader in the sector.

French pharmaceutical giant Sanofi-Aventis and U.S. group Merck announced on March 9 they would join forces to create the world's biggest animal health company. The companies will own an equal share in the joint venture, which will combine Sanofi-Aventis's Merial unit with Merck's Intervet/Schering-Plough.

The combined business would hold 29% the market with sales of about $5.3 billion (3.9 billion euros), making it the leader in the sector ahead of Pfizer's animal health unit Fort Dodge.

Merck said the animal health market was expected to grow at around 5% per year thanks to an increasing demand for animal proteins and strong demand from consumers for health care for their pets.

"The upcoming combination of Merial and Intervet/Schering-Plough is an exciting opportunity for Sanofi-Aventis to create with Merck a leading company in the Animal Health strategic and growing sector," Sanofi-Aventis Christopher Viehbacher said.

Sanofi-Aventis decided to exercise its option to merge its animal health division with Merck's unit. The option has been available since July 29 when Sanofi-Aventis bought Merck's stake in Merial for four billion dollars. The deal will cost the French group one billion dollars -- a payment of $250 million to Merck and $750 million under the terms of the July 2009 agreement.

"Merck has been in the animal health business for well over six decades and through this new joint venture, we will bolster our diverse portfolio and create a new global competitor poised for growth," Merck chief executive Richard Clark said.

Copyright Agence France-Presse, 2010

Popular Sponsored Recommendations

How to Build Zero-Cost On-Site Solar and Storage Projects

Nov. 25, 2023
The Inflation Reduction Act offers tax credits, incentives, and financing that enable no-cost projects. In Enel’s eBook, discover the critical role that incentives play in your...

The Ultimate Ecommerce Excellence Checklist

Oct. 2, 2023
Scaling ecommerce operations is no easy task when your business is moving fast. Assess your current ecommerce maturity level and set optimization priorities with this practical...

Discrete and Process Manufacturing 2024 Trends and Outlook for North America

Oct. 29, 2023
Manufacturers are reaping the benefits of automation and cloud-based solutions. Discover what is driving today's industry trends and how they can shape your growth priorities ...

Process Mining For Dummies

Nov. 19, 2023
Here it is. Everything you need to know about process mining in a single book, written in the easy-to-understand, hard-to-forget style that ‘For Dummies’ manages so effortlessly...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!