London, June 5: Swedish drugs group Astra AB is close to announcing a deal worth up to $10 billion to acquire control of its joint venture with Merck and Co Inc in the US, The Financial Times said on Friday.The move might put Astra into play in the global merger market for drugs companies.The Financial Times said the transaction between the firms, which jointly market Astra's best selling ulcer treatment Losec in the US, would involve an initial cash payment by Astra of $1.5 to $3 billion and was due to be announced on Monday.
The newspaper said the deal was described by "those close to the deal" as one of the sector's "biggest divorces of all time".
It said the move would pave the way for Astra, one of Europe's strongest pharmaceutical companies, to pursue a multi-billion dollar merger in the consolidating global drugs industry.Astra chief executive Hakan Mogren was expected to fly to New York shortly to finalise details of the Merck acquisition, the Financial Times said.
Merck has the rightsto half of profits in the US - the world's biggest pharmaceuticals market - from Losec and other Astra products under a joint venture formed four years ago when Astra paid $820 million for a 50 per cent stake in Merck's sales unit.
(Reuters)
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
