Nestlé and Stada interested by the pôle grand public of Merck KGaA

LONDON/FRANKFURT (Reuters) – (Repeat title)

Switzerland’s Nestlé (SIX:NESN) and the investment funds owners of the pharmaceutical group of the German Stada prepare all of the two competing offers on the division consumer health care Merck (NYSE:MRK) KGaA, reported several sources to Reuters.

JP Morgan, the bank’s board of Merck KGaA, has prompted the possible beneficiaries to submit their offers for the division valued at about 4 billion euros before the 15th of December, they said.

Nestlé seems to be a natural buyer. The swiss group, which preferred the option of a joint venture, has already had preliminary discussions during the summer with Merck KGaA.

The investment fund Bain Capital and Cinven, who have taken control of Stada, hoping to use the division of Merck as a development platform for their pharmaceutical group, which manufactures generic drugs and has achieved an annual turnover of more than € 2 billion in 2016, added the sources.

Nestlé, Stada, Cinven and Bain refused to comment on the information.

Food supplements and other vitamins manufactured by Merck would allow Nestlé to develop in the health sector, general public, identified as a priority by Mark Schneider, the director general of the agribusiness giant.

Nestlé has also offered $ 20 billion for the assets of consumer health in the american laboratory Pfizer (NYSE:PFE), added the sources.

But the portfolio of Merck is smaller and less diversified than that of Pfizer, and enable the swiss group to remain closest to his heart activity, she explained

The owners of Stada are also looking to make an offer for generic of Sanofi (PA:SASY), the French laboratory should be put on sale, have clarified the sources.

Merck had said in September want to sell its health division general public to be able to invest more in research dedicated to prescription drugs.

(Pamela Barbaglia, Ludwig Burger and Patricia Weiss; Catherine Mallebay-Vacqueur for the French service)