Novartis has announced its intention to gain full ownership of eye care company Alcon, according to a Novartis news release.
Novartis will first complete its April 2008 agreement with Nestlé S.A. to acquire a 77 percent majority stake in Alcon and will then enter into an all-share direct merger with Alcon for the remaining 23 percent minority stake, according to the release.
Novartis acquired a 25 percent stake in Alcon for $10.4 billion in 2008.
On Jan. 4, 2010, Novartis and Nestlé initiated completion of the 2008 agreement, whereby Novartis is exercising its call option to acquire Nestlé's remaining 52 percent Alcon stake for $28.1 billion.
The acquisition, which is subject to required regulatory approvals, is expected to be completed in the second half of 2010.
"The addition of Alcon will strategically strengthen our healthcare portfolio and our position in eye care, a sector with dynamic growth due to the increasing patient needs of an aging population," Daniel Vasella, MD, chairman and CEO of Novartis, said in the release. "This is the right time to simplify Alcon's ownership to eliminate uncertainties for employees and shareholders. It will also allow us to strengthen innovation power by combining R&D efforts and grow our global market presence thanks to our complementary product portfolios."
Read the release on Novartis's acquisition of Alcon.
Novartis will first complete its April 2008 agreement with Nestlé S.A. to acquire a 77 percent majority stake in Alcon and will then enter into an all-share direct merger with Alcon for the remaining 23 percent minority stake, according to the release.
Novartis acquired a 25 percent stake in Alcon for $10.4 billion in 2008.
On Jan. 4, 2010, Novartis and Nestlé initiated completion of the 2008 agreement, whereby Novartis is exercising its call option to acquire Nestlé's remaining 52 percent Alcon stake for $28.1 billion.
The acquisition, which is subject to required regulatory approvals, is expected to be completed in the second half of 2010.
"The addition of Alcon will strategically strengthen our healthcare portfolio and our position in eye care, a sector with dynamic growth due to the increasing patient needs of an aging population," Daniel Vasella, MD, chairman and CEO of Novartis, said in the release. "This is the right time to simplify Alcon's ownership to eliminate uncertainties for employees and shareholders. It will also allow us to strengthen innovation power by combining R&D efforts and grow our global market presence thanks to our complementary product portfolios."
Read the release on Novartis's acquisition of Alcon.