Zeneca To Acquire ICI Pharma Unit

UK pharmaceutical company Zeneca has entered into an agreement topurchase from Imperial Chemical Industries its pharmaceutical business in Australia. ICI will first make a global equity offering of ICI shares in ICIA, which will result in it owning more than 50% of ICIA. The offering is expected to raise around L1 billion ($1.64 billion.

Purchase under the agreement involves an independent valuation, guided by pre-agreed factors including valuation as a going concern, previous trading results, the future cash flow of existing products and of future products, which have a specific stage in the regulatory process and the net book value of relevant assets.

Zeneca has also reached an agrochemicals distribution agreement with ICIA and Crop Care Australasia, a joint venture in which ICIA has a 50% stake, that Zeneca will not exercise termination rights by reason of a change in control. Crop Care has an agreement to distribute Zeneca's agrochemical products in the region.