Bayer receives clearance to complete Schering AG purchase

Bayer has received clearance from the European Commission to complete the purchase of Schering AG after the deal was studied for compliance with European antitrust law. The deal has already been accepted by US antitrust authorities.

The company says that the acceptance of the deal by Schering AG shareholders must be completed by May 31st – a move that Bayer management board chairman Werner Wenning strongly advises for Schering AG shareholders.

He said that the offer of 86 euros (58.74 pounds) per share was 61 per cent above Schering AG’s average unweighted 12-month average price and 39 per cent higher than when the first takeover rumours began circulating.

Mr Wenning said: “It is thus worthwhile for Schering shareholders to accept our offer.”

Last month at Bayer’s annual stockholders’ meeting in Cologne, Mr Wenning told the audience: “The acquisition of Schering would be a veritable milestone in strengthening our specialty pharmaceuticals business. Both companies are convinced that this merger is the best way to create an international health care heavyweight.”

Schering AG’s chairman of the executive board, Dr Hubertus Erlen, said Bayer’s acquisition bid was welcome. He said in a statement to shareholders: “Bayer?s proposal has been carefully examined considering the interests of all stakeholders. It includes a fair price and additional important commitments.”

“Therefore we are convinced that it is a good offer,” he concluded.

According to Reuters, the takeover will cost Bayer 16.5 billion euros. Schering AG had rejected an “unsolicited” hostile takeover from Merck earlier this year, as the Schering board felt that the bid “significantly undervalues” the company’s true worth.

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