Alcon agrees to terms of Novartis merger

Alcon has announced that it has reached an agreement with fellow healthcare company Novartis over the proposed merger between the firms.

The board of directors at Alcon has approved a transaction which will see Novartis pay a total merger consideration worth $168 (107.27 pounds) for each Alcon share it does not own, via a combination of Novartis shares and a contingent value cash component.

This merger will see Alcon become the second-largest division of Novartis, with various Ciba Vision and Novartis products to be integrated into Alcon as part of the deal.

It means that the new business will be worth more than $8.7 billion a year in sales terms and will control 70 percent of the total eye care market.

Kevin Buehler, Alcon's president and chief executive officer, said: "This merger will create a stronger eye care business with broader commercial reach and enhanced capabilities to develop more new and innovative eye care products that address unmet clinical needs."

According to Alcon's most recent financial report, the company achieved a nine percent year-on-year sales growth in the third quarter of 2010, generating a three-month total of $1.76 billion.