Novartis completes first stage in $38 billion takeover of eye-care company Alcon
Novartis AG said that it has completed the first stage of its US $38 billion takeover of US eye-care company Alcon Inc.
By Agencies |
SWITZERLAND: Novartis AG said on Tuesday it has completed the first stage of its US $38 billion takeover of US eye-care company Alcon Inc.
The Swiss pharmaceuticals company paid current majority shareholder Nestle SA US $10.4 billion cash for a 25 per cent stake in Alcon. This is about US$200 million less than when the deal was originally announced in April.
Novartis still has the exclusive right to buy Nestle's remaining 52 per cent stake in Alcon for about US $28 billion between January 2010 and July 2011.
The second step is optional, but both companies would have to agree not to exercise their rights for it to fall through.
The sale of Texas-based Alcon, which makes Opti-Free contact lens solution and has 14,500 employees worldwide, is the largest takeover in Swiss history.
Alcon's turnover last year was US$5.6 billion, with a net profit of US $1.6 billion.
Novartis shares were down 0.4 per cent at 57.80 Swiss francs (US $56.54) in Zurich. Nestle shares dipped 1.1 per cent to 45.44 francs (US $44.46).
The Swiss pharmaceuticals company paid current majority shareholder Nestle SA US $10.4 billion cash for a 25 per cent stake in Alcon. This is about US$200 million less than when the deal was originally announced in April.
Novartis still has the exclusive right to buy Nestle's remaining 52 per cent stake in Alcon for about US $28 billion between January 2010 and July 2011.
The second step is optional, but both companies would have to agree not to exercise their rights for it to fall through.
The sale of Texas-based Alcon, which makes Opti-Free contact lens solution and has 14,500 employees worldwide, is the largest takeover in Swiss history.
Alcon's turnover last year was US$5.6 billion, with a net profit of US $1.6 billion.
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Novartis shares were down 0.4 per cent at 57.80 Swiss francs (US $56.54) in Zurich. Nestle shares dipped 1.1 per cent to 45.44 francs (US $44.46).
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