Ending months of uncertainty, French pharma major Sanofi-aventis on Wednesday said it would buy U.S. biotechnology giant Genzyme Corp for over $20 billion.
The proposed deal has been dragging due to valuation issues ever since Sanofi-aventis came with a hostile takeover offer in August last year.
In a joint statement, Sanofi-aventis and Genzyme said “they have entered into a definitive agreement under which Sanofi-aventis is to acquire Genzyme for $74 per share in cash, or about $20.1 billion.”
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Under the agreement, Sanofi-aventis agreed to raise its offer from $69 a share offered earlier to about $74 a share in cash taking the total amount to $20.1 billion. In addition, Sanofi-aventis will also pay contingent value right, or CVR. Sanofi-aventis, which has a significant presence in India and employs over 1,800 people in the country, has been pursuing Genzyme since last summer, offering a price of $18.5 billion, the joint statement said.