Novartis to buy remaining stake in Alcon

The multinational medical products company Novartis, Basel, Switzerland, said that it plans to pay $39.3 billion to acquire the remaining 75% stake of Alcon, a Fort Worth, Texas-based eye-care company.

The two-part cash and stock deal calls for Novartis to pay $28.1 billion cash to current Alcon shareholder Nestle to acquire its remaining stake in the company. The transaction will complete an acquisition agreement initiated in April 2008 where Novartis paid $10.4 billion to buy 25% of Nestle’s shares in Alcon. In addition, Novartis will offer Alcon shareholders 2.8 shares of Novartis stock for each share of Alcon stock they currently own in a deal valued at $11.2 billion, according to Novartis officials.

The total acquisition will be valued at just under $50 billion. The proposed purchase is still subject to approval by Novartis and Alcon shareholders.

Alcon’s product offerings include vision-surgery devices and eye-disease treatment drugs. The acquisition is expected to eliminate speculation on outstanding Alcon shares and strengthen Novartis’ research and development efforts and global reach in the eye-care market, company officials said.

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