Pfizer shells out $68 billion to takeover Wyeth
US pharmaceutical manufacturer, Pfizer Inc., is all set to acquire the rival drug manufacturer, Wyeth for $68bn in a ‘cash and stock deal’. The merger deal, announced by the two companies on Monday is not only the largest pharmaceutical takeover deal in nearly a decade but would also be the first big merger backed by Wall Street in months.
New York based Pfizer Inc., said in the statement, that its net income for the fourth quarter dropped by 90% from a year ago, and also announced its plans to cut its work force by about 10 percent and reduce the number of its manufacturing sites.
The merger is expected to add to Pfizer’s fourth-quarter adjusted profit and aid the company in diversifying its product portfolio due to Wyeth’s strong presence in biotech drugs and vaccines.
Pfizer has four major banks, Goldman Sachs, JPMorgan Chase, Citigroup and Bank of America, financing $22.5 billion for its takeover.
In a statement released on Monday, the Pfizer’s chief executive, Jeffrey B. Kindler said, “The combination of Pfizer and Wyeth will meaningfully deliver Pfizer’s strategic priorities in a single transaction. Our combined company will be one of the most diversified in the industry and will benefit from complementary patient-centric units that match speed with the benefits of a global company’s scale and resources.”
The pharmaceutical giant has earlier bought Warner-Lambert for $93.4 billion in 2000 and Pharmacia for $60 billion three years later in 2003.
