Hoechst said in a brief statement that it was not yet sure if the talks would lead to a successful merger of the business. "No guarantee can be made over the outcome of the negotiations," Hoechst said.

The possible merger of French giant Rhone-Poulenc and German multinational Hoechst Marion Roussel could see the formation of a Rs 700 crore pharmaceuticals combine (market share of around 4.5 per cent) in India. The proposed marriage will also spawn an agrochemicals entity with a combined turnover in excess of Rs 370 crore and added muscle in the animal health business.

While the complicated deal will involve three Hoechst group companies (Hoechst Marion Roussel India, Hoechst Schering AgrEvo and Hoechst Roussel Vet), the French multinational has four arms -- Rhone-Poulenc India, Rhone Poulenc Rorer India, Rhone PoulencAgro and Rhone Merieux.