Novartis plans Alcon takeover

Posted on 7 Apr 2008 by The Manufacturer

Pharmaceutical firm Novartis has made plans for a $40 billion (25.5 billion euro) acquisition of Alcon – the world’s biggest eye care company – from Nestle.

The deal would allow Novartis 25.85 per cent of Alcon for $11 billion (7.0 billion euros), with the option to purchase the remaining Nestle-owned majority stake – 52 per cent at a cost of $28 billion – between January 2010 and July 2011.

“This acquisition furthers our strategy of accessing high-growth segments of the healthcare market while balancing inherent risks,” said Novartis chairman and chief executive Daniel Vasella.

Nestle says it will use the funds made available by the sale to grow the company, including expansion in the nutrition and health sectors.