Merial stake to be purchased by Sanofi-aventis

Merial shares currently owned by Merck are set to be purchased by Sanofi-aventis, it has been announced.

In a statement, it was noted that Merck will sell its 50 per cent stake in Merial to the firm for $4 billion (2.42 billion pounds) in cash.

Established in 1997, Merial is a joint venture between the two companies, with each owning half. However, following the deal, Sanofi-aventis will be the sole owner of Merial.

In addition to the transaction, Merck, Sanofi-aventis and Schering-Plough have announced the signing of a call option agreement, which would come into effect after the close of the Merck/Schering-Plough merger.

The agreement will provide Sanofi-aventis with the option to combine Merial with the Intervet/Schering-Plough Animal Health business to form an animal health joint venture that would be owned by Sanofi-aventis and the new Merck.

In recent weeks, Intervet/Schering-Plough Animal Health announced the introduction of the canine vaccine NOBIVAC Lyme.