Abbott Labs nears 4.4bn pharma deal
Belgium drugs conglomerate Solvay is believed to be close to a €4.8bn (£4.4bn) deal with US firm Abbott Laboratories.
Solvay put its pharmaceuticals business up for sale two months ago in a bid to raise cash for acquisitions in its chemicals portfolio.
Swiss drugmaker Nycomed had previously made an offer between €4bn and €5bn for Solvay’s pharma division, which if raised could be the beginning of a bid battle.
Solvay’s sell-off follows in the footsteps of drug-chemical hybrid peer Akzo Nobel, which sold its drugs unit Organon for €11bn and is now reaping significant synergies as part of its restructuring following a buyout of Imperial Chemical Industries – a deal which made it the world’s largest paint maker.
Analysts said that the drug business had limited prospects but had served the company well through the downturn, and that Solvay would look for a similarly stable business to buy in chemicals, possibly metals and specialty maker Umicore.
Matrix analyst Navid Malik said: “Both Nycomed and Abott want to bulk up their pharmaceuticals offering. And this is a quick way to do it. Pharma valuations are still very low and when there is a state of flux the options are to either sell up or buy.”
Malik added that a deal would spark a wave of bolt-on acquisitions and mid-market mergers.