This is the portion of the news article, which focuses on the make-up of the "merged" HOE/RP company:
"Thursday November 26 2:17 AM ET
Hoechst, Rhone Plan Top World Drugs/Agrochemical Corp
By Matt Karnitschnig
FRANKFURT, Germany (Reuters) - Germany's Hoechst AG (NYSE:HOE - news) and France's Rhone-Poulenc SA (NYSE:RP - news) ended weeks of speculation Wednesday by confirming they are discussing a merger to create the world's largest drugs and agricultural chemicals maker.
The two companies said in a brief statement that they are ''negotiating a potential life sciences merger'' that analysts estimated would be worth at least 60 billion marks ($35.29 billion).
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The new company would supplant Switzerland's Novartis AG as the world's largest ''life sciences'' company, a term used to describe makers of pharmaceuticals and agricultural chemicals.
It would also create the world's second-largest drug maker with sales of about $13 billion in the $240 billion industry. That would place it behind industry leader Merck.
Hoechst and Rhone have both sought to move away from their traditional industrial chemicals activities in favor of the more lucrative life sciences.
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Hoechst's drug division is primarily known for its hypertension and vascular disorder treatments such as Cardizem, while Rhone has traditionally been strong in vaccines.
The new company, consisting of Hoechst's Agrevo joint venture and Rhone's Rhodia subsidiary, would control about one-fifth of the $50 billion global agricultural chemicals market. Its $4.55 billion in sales would make it sector leader ahead of Switzerland's Novartis.
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The companies would give no further information on the talks, but industry sources said Rhone-Poulenc's contribution to the new group would include all its activities except the Rhodia specialty chemicals unit in which it holds 70 percent.
Hoechst's contribution would include its life-science holdings, and would not encompass its 45 percent share in Clariant, a specialty chemicals group, or its other remaining chemical assets." |
