Pfizer to acquire Pharmacia
16 Jul 2002
Pfizer is to acquire Pharmacia in a stock-for-stock transaction valued at $60 billion, creating a company with combined annual revenues for 2002 of approximately $48 billion, including $39 billion in prescription sales.
Pharmacia also announced that its Board of Directors intends to proceed with its previously announced spin-off of its remaining 84% ownership of Monsanto to its current shareholders.
After the Monsanto spin-off, Pfizer will exchange 1.4 shares of Pfizer common stock for each outstanding share of Pharmacia stock in a tax-free transaction valued at $45.08 per Pharmacia share, based on Pfizer's July 12 closing stock price of $32.20.
This transaction represents a 44% premium based on the average closing prices of the two stocks over the last 30 days, adjusted for the Monsanto spin-off.
Already the leading pharmaceutical company in the US States and Canada, Pfizer with Pharmacia will move from fourth to first in Europe, from third to first in Japan and from fifth to first in Latin America in pharmaceutical sales.
The transaction is expected to close by year-end 2002, subject to the approval by shareholders of both companies, necessary governmental and regulatory approvals and other usual and customary closing conditions.
