AHP & Monsanto Merger Creates $96 Billion Firm
US pharmaceutical group American Home Products and life sciences companyMonsanto are to merge in a $35 billion stock deal which will create a company with a market capitalization of approximately $96 billion. Both groups say that negotiations have been underway for a couple of months and the agreement is the largest in the sector since the Sandoz-Ciba tie-up in Switzerland to create Novartis in 1996.
In what the companies term "a merger of equals transaction," Monsanto equity holders will receive 1.15 shares in the new, as-yet unnamed, company for each Monsanto share they own. AHP will hold a 65% stake in the new entity, which is expected to have annual sales in the region of $23 billion.
The company will have some 75,000 employees and its corporate headquarters will be in Madison, New Jersey, where AHP is based. While the agricultural business will be headquartered in St Louis, home to Monsanto, the new company's pharmaceutical division will be run from Radnor, Pennsylvania.
This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.
Login to your accountTry before you buy
Free
7 day trial access
- All the news that moves the needle in pharma and biotech
- Exclusive features, podcasts, interviews, data analyses and commentary from our global network of life sciences reporters.
- Receive The Pharma Letter daily news bulletin, free forever.
Become a subscriber
£820
Or £77 per month
- Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
- Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
- Daily roundup of key events in pharma and biotech.
- Monthly in-depth briefings on Boardroom appointments and M&A news.
- Choose from a cost-effective annual package or a flexible monthly subscription
The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed
Chairman, Sanofi Aventis UK
Today's issue
Company Spotlight
Copyright © The Pharma Letter 2025 | Headless Content Management with Blaze