Roche seals $46.8 billion Genentech deal
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Swiss pharmaceutical giant Roche said Thursday it has sealed a friendly deal to take full control of its U.S. biotechnology unit Genentech after increasing the offer price to $95 a share.
In a joint statement released by Roche, which already holds nearly 56 percent of Genentech, the Swiss company said it will pay $46.8 billion (36.5 billion euros) for the remaining shares as a result of raising its offer price to $95 from $93.
Genentech's board of directors recommended acceptance of the offer, which is valid until March 25.
"We believe this is a fair offer for Genentech shareholders and the Committee is pleased to come to a successful conclusion of this process" said Charles Sanders, chairman of the special Committee of Genentechs board.
Roche said the deal was positive for shareholders in both companies.
The merged entity will be ranked seventh in the U.S. market, with annual sales of $17 billion and some 17,500 employees.
Roche made a first bid for full control of Genentech in July last year but its offer was rebuffed then as too low at $89 per share.
Roche, which bought into Genentech in 1990, said it expected the deal would generate annual pre-tax savings of between $750 and $850 million.