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.
Novartis to buy remaining stake in Alcon
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.
What do you think? Post a comment on this article and share your opinion with other readers. Submit your comments to Modern Healthcare Online at [email protected]. Please be sure to include your hometown and state, along with your organization and title.
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.