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Abbott India to merge with Solvay Pharma India

Abbott India, a subsidiary of Abbott Laboratories, and Solvay India are set to merge at a swap ratio of 2:3 where Solvay Pharma's shareholders will get three shares of Abbott India for every two held.

The transaction follows Abbott Laboratories global take over of Belgium-based Solvay‘s pharmaceutical business for EUR4.8bn in 2009.

Solvay Pharma India has a presence in women’s health, gastroenterology, mental health and influenza vaccines.

Abbott India that offers a diverse range of pharmaceutical, nutritional and medical products, has acquired the domestic formulations business of Piramal Healthcare early this year.

Business Line quoted UBS Investment Bank Anuj Mithani as saying that the global integration happened earlier this year and the local amalgamation is to consolidate its two Indian listed companies into one combined entity.

Following the merger of Abbot India and Solval Pharma India, the US based Abbott will own about 75% in the combined entity.

Reportedly, following the global acquisition of Solvay’s pharma business, Abbott’s stake in Solvay’s Indian arm increased from 69% to about 89%.

The transaction which is subject to court approval is expected to close in the early next year, said Abbott.