Sanofi-aventis and Genzyme agree terms for merger

Sanofi-aventis has reached an agreement with Genzyme over a multi-billion-dollar merger between the two companies.

The boards of both firms have approved a $20.1 billion (12.5 billion pounds) transaction that will see Genzyme become Sanofi-aventis' global centre for excellence in rare diseases, while also expanding its presence in the Boston area.

Genzyme, which also offers strong renal-endocrinology, haematology-oncology and biosurgery products, will retain its corporate branding once the acquisition is complete.

Sanofi-aventis expects that the takeover will help to improve its standing in the biotechnology market and will position it for future growth.

Christopher Viehbacher, chief executive officer of Sanofi-aventis, said: "This agreement with Genzyme is both consistent with our long-term strategy and creates significant long-term value for our shareholders."

According to Sanofi-aventis' financial report for 2010, the company saw a 2.6 percent earnings per share increase last year, while also generating net sales of 30.38 billion euros (25.56 billion pounds).