Merck Will Purchase Sigma-Aldrich

Merck KGaA has agreed to purchase Sigma-Aldrich Corp to the tune of $17B in cash, in hopes of expanding the range of chemicals used in research labs and pharmaceutical manufacturing while reducing its dependence on drug development.

Merck’s move away from developing pharmaceuticals couldn’t come at a better time, as their Sereno biotechnology business has struggled to create new products in recent years. Merck acquired Millipore Corp, a U.S. maker of lab equipment and chemicals, in 2010 for approximately $6B. They also bought AZ Electronic Materials SA, a chemical supplier for electronics companies, this year for $2.5B.

Merck, founded in 1668, pulled in 58% of its revenue from pharmaceuticals last year, while chemicals accounted for 39%. They make liquid crystals that are used in flat-screen televisions as well as lab equipment and chemicals. Merck acquired Sereno, a Swiss biotechnology company, way back in 2007, but hasn’t had a major new drug approved since 2003.

In a telephone interview, Ulrich Huwald, analyst at Warburg Research in Hamburg, said, “Today’s deal shows the family is committed to a conglomerate structure in which all the branches of the company get investment funding. After last week you can’t question the future of Serono.”

According to Merck, shareholders will vote on the transaction, and the deal is expected to close in 2015. This will trump the purchase of Sereno, which was valued at approximately $13.5B at the time of the transaction.

 

Featured image via Krisztian Bocsi/Bloomberg

 

 

About Blaine Martin

I enjoy taking in the world around me and facing the challenge of conveying news and information that is clear, timely and professional. Please like and share our articles!

Have a tip we should know? tips@rhd.news

Uncategorized

Most Read

  1. ARTS
    With a Vengeance and no Apologies, Art Basel Miami Beach Has Returned
    10 months ago
  2. Food
    Is Faux Turkey Finally Vegan-Approved for Thanksgiving?
    10 months ago
  3. News
    Pandora Papers Financial Leak Shows Us the Secrets of the World’s Rich and Powerful
    12 months ago
  4. Health
    US Supreme Court Rejects J & J TALC Cancer Case Appeal
    1 year ago
  5. Lifestyle
    9 Habits that Drain your Daily Focus and How to Avoid Them
    1 year ago
  6. BUSINESS
    Women’s Demand for Shapewear – the big Trends
    1 year ago
  7. BUSINESS
    Valentino Launches its Cosmetics Line
    1 year ago
  8. Business
    McDonald’s Sales Increase Amid COVID Restrictions
    1 year ago
  9. Health
    US Promises to Share 60 million Doses of AstraZeneca Vaccines
    1 year ago
  10. coronavirus
    UK Offers Aid Amid Surging COVID-19 Cases in India
    1 year ago
  11. Entertainment
    Nomadland Director Chloé Zhao, Wins the Best Director in 2021 Oscar
    1 year ago
  12. Asia
    Pakistan floods: ‘The water came and now everything is gone’
    4 weeks ago
  13. News
    Iraq: At least 23 dead amid fighting after Moqtada al-Sadr quits
    4 weeks ago
  14. News
    Pakistan floods are ‘a monsoon on steroids,’warns UN chief
    4 weeks ago
  15. BREAKING NEWS
    Pakistan floods: Desperation and displacement in Sindh province
    1 month ago
  16. Enviroment
    Climate change: Russia Burns off Gas as Europe’s Energy Bills Rocket
    1 month ago
  17. News
    Ukraine war: Russia railway station strike kills 25, injures dozens
    1 month ago
  18. News
    Sewage in sea: French appeal to EU over UK discharges of waste
    1 month ago

Follow @rushhourdaily: