Sanofi-Aventis ‘among bidders’ for Merck KGaA’s generic drugs business

Following reports that Merck KGaA is to divest its generic drugs business unit, one worth an estimated four billion euros (2.7 billion pounds), there is speculation that pharmaceutical firm Sanofi-Aventis is interesting in purchasing the business segment.

Citing a number of sources in Germany, La Tribune stated that the world’s third largest pharmaceutical company would seek to acquire the generics business of Merck KGaA, were it to come on the market, AFX news said.

However, representatives from both Sanofi-Aventis and Merck declined to comment on these rumours of a transaction between the companies.

This news follows reports from earlier this week that Merck would be interested in selling its business in generic drugs, news which caused the company’s shares to rise in value.

Bloomberg reports that if the company does divest this business unit, it will reduce the need for it to sell shares and stocks to fund its recent acquisition of Serono.

Jochen Schlachter, credit analyst at HVB Group, told the news agency: “The bond offering may be off the table should the sale proceeds be high enough.”

Earlier this week, analysts discussed the possibility of a number of buyers for Merck’s generics business, including Novartis’ Sandoz unit or a number of private investors.