German pharma Merck makes bid for US group Versum

Merck KgaA's takeover of Versum Materials would be the company's biggest since its 2015 purchase of US materials supplier Sigma-
Merck KgaA's takeover of Versum Materials would be the company's biggest since its 2015 purchase of US materials supplier Sigma-Aldrich

German pharmaceutical group Merck KgaA said Wednesday it had offered to buy electronics industry supplier Versum Materials for 5.3 billion euros ($6 billion), its biggest purchase in four years.

In the all-cash offer, the Darmstadt-based group said it would pay shareholders $48 per share for the US company with a current market capitalisation of $4.6 billion.

Merck said merging the two businesses would create a portfolio of ", equipment and services for the semiconductor and display industries".

The takeover would be the biggest for Merck since its 2015 purchase of US materials supplier Sigma-Aldrich for $17 billion.

Merck will however have to beat off competition from a US rival Entegris, for Versum. Entegris had already offered to buy Versum in January, but Merck believes that its offer is superior.

The German group's decision was however seen negatively by investors, with the stock sliding 3.71 percent to 91.36 euros at 1455 GMT, underperforming the DAX which was trading down 0.25 percent.


Explore further

Germany's Merck to buy materials supplier AZ

© 2019 AFP

Citation: German pharma Merck makes bid for US group Versum (2019, February 27) retrieved 17 May 2022 from https://medicalxpress.com/news/2019-02-german-pharma-merck-group-versum.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
 shares

Feedback to editors