Sanofi-Aventis & Merial

Sanofi-aventis, a leading global pharmaceutical company. Within the coming weeks, it plans to merge its Merial activity (veterinary drugs) with those of Schering-Plough/Intervet. The combined turnover of the joint venture might reach USD5.5 billion (EUR4.0 billion) out of a total market estimated at USD20 billion (EUR14.7 billion). To satisfy competition rules, the merged activities should nevertheless consider a turnover divestment comprised between USD750 million (EUR552 million) and USD2 billion (EUR1.5 billion) (mainly in poultry vaccines). To obtain 50% in the joint venture, Sanofi-Aventis will have to put USD750 million (EUR552 million), or a reasonable fraction of its USD7 billion (EUR5.2 billion) 2009 net profit.