Merck KGaA completes financing for Serono buyout

Merck KGaA has announced it has completed the financing process for the acquisition of Serono, the Swiss pharmaceutical company.

Having syndicated 11.5 billion euros (7.8 billion pounds) in multi-term loan and revolving credit facilities, Merck KGaA can now complete its purchase of a majority shareholding in Serono.

The German company claims it received “outstanding support” from the international banking market, resulting in a “substantial oversubscription” ? 46 banks in 12 countries approved the transaction.

Michael Roemer, chairman of Merck KGaA’s executive board, said during the announcement of the takeover in September that the impetus behind the merger was to create “a leading position in the world of biologic medicines”.

He also described the companies as a “perfect fit”, with 28 compounds in development. The merger between the two companies marks a period of consolidation in among German pharmaceutical companies.

Previously, Bayer and Schering AG had merged to form the new Bayer-Schering pharmaceutical group. Merck KGaA had also been interested in purchasing Schering AG, but eventually withdrew from the bidding war with Bayer.

Altana AG, another German chemical and pharmaceutical group, recently sold its pharmaceutical operations to Nycomed, a Danish medicines manufacturer.