Sanofi-Aventis set to make concessions to secure Zentiva: EU
(BRUSSELS) - French pharmaceutical giant Sanofi-Aventis has proposed concessions to get the green light from EU regulators for its proposed buyout of Czech generic drugs company Zentiva, the European Commission indicated Friday.
As usual, the EU executive gave no details of the changes, which could include the selling of affiliates to avoid charges of over-dominance in a particular market.
As a result of the new information the EU mergers watchdog has extended their examination of the dossier from January 21 to February 4.
In November Sanofi-Aventis, which already owns 24.9 percent of the Czech Republic's biggest drugs company, raised its offer to 1,150 koruna (46 euros, 66 dollars) per share from the previous 1,050 koruna in October. That put the value of the company at 43.2 billion koruna.
Zentiva's board of directors recommended shareholders accept the revised offer, which was opposed by Czech financial group PPF, holding 21.59 percent in Zentiva.
Sanofi-Aventis, which employs about 100,000 staff worldwide, says it wants Zentiva to become a platform for its growth in Central and Eastern Europe.
Zentiva, which makes generic drugs, is listed in London and Prague, and employs more than 6,000 in the Czech Republic, Slovakia, Romania and Turkey.
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