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Shareholders of Abbott India and Solvay Pharma India Ltd, respectively, have approved the merger of Solvay with Abbott in India, in line with the global integration strategy.
The combined critical mass will enhance the ability of the entity to act as a leader in the local industry, said Mr Vivek Mohan, Managing Director of Abbott India Ltd . Abbott announced the global acquisition of the Solvay Pharmaceuticals business in September 2009.
The board of directors of both Abbott and Solvay in India, met in November last year, and approved the merger.
On Wednesday, shareholders of both companies voted to merge.
Four separate, independent auditors and valuers advised Abbott and Solvay on a fair stock price before the merger decision was finalised, an Abbott note said.
The two companies have complementary portfolios and mutual benefits from the consolidation, including longer-term financial savings and employee growth opportunities, it added, without giving details.
New names
On the Piramal businesses that Abbott had also acquired, it said, they were now known as Healthcare Solutions and TrueCare, and operate as stand-alone business units.
Abbott India will continue to operate independently from Abbott Healthcare Private Ltd , with each continuing to focus on the products, customers and markets in which they are experienced, the company clarified.
With a presence in India for more than 100 years, the Abbott group has about 10,000 employees in India, the largest employee base outside the US , where the parent company is headquartered, the note said.
Its key products include antacid Digene, laxative Cremaffin, Brufen, anti-infective Omnatax, and topical steroid Lobate. The company's manufacturing facilities are in Goa and Baddi.
With a network of 18 distribution points, 11,000 stockists and pharmacists and 70,000 retailers, the note said.
The company's product also includes Isomil (a soya-based formula for infants and children), Ensure (adult nutritionals) and Glucerna (nutrition for people with diabetes) and medical products in the vascular, diagnostics, diabetes care and vision care segments.
The shares of Abbot India closed on the BSE on Thursday at Rs 1,232.45 (Rs 1,227.75) and Solvay Pharma at Rs 1,825.50 (Rs 1,812.85).
jyothi@thehindu.co.in
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