Merck KGaA to Explore Divestiture of Its Generics Business
Merck KGaA confirmed, that it is evaluating the divestiture of its generics division (Merck Generics) as one strategic option. Merck is not engaged in initial discussions with any potential buyers. Irrespective of this strategic evaluation Merck still plans to make a capital increase of EUR 2 billion to EUR 2.5 billion within the first quarter of 2007.
Merck Generics has sales in more than 90 countries and is the number 3 ranked generics business in the world, according to the company. In 2005 Merck Generics reported sales of EUR 1.8 billion and an operating result of EUR 238 million. The division employs approximately 5,000 people worldwide.
"Merck Generics has a strong business with excellent leadership and good growth prospects for the future. However it will need continued investment to fully realize its potential and strengthen its market presence," said Dr. Michael Roemer, Chairman of the Executive Board of Merck KGaA. "In light of the far-reaching changes occurring in the market we are considering as an option the divestiture of Merck Generics to a qualified buyer."
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