Intervet to be bought by Schering Plough

Combining the world's third largest veterinary company (Intervet) and the fifth (Schering Plough), the acquisition creates the world's largest veterinary company, according to Akzo Nobel's media officer Tim van der Zanden.

The acquisition was part of a larger deal in which Schering Plough bought Organon BioSciences, the pharmaceutical division of chemical company Akzo Nobel, of which Intervet is one part. In total, SP pays about €11 billion. The new company's animal health headquarters will be based in Boxmeer (the Netherlands), currently the home of Intervet. Both companies will remain functioning under their own names.

Van der Zanden said negative consequences were hardly present: "We are not talking about a slicing and cutting deal. What we are looking for is growth. This way, Schering Plough can become bigger in Europe and Intervet can grow further in the US." As the deal was made rather quickly and unexpectedly over the weekend, further details yet have to be released. Parties expect that the transaction could be completed in the second half of the year, after consultation with social partners, and clearance from regulatory bodies.

Last year, Akzo Nobel already announced that it envisaged a separation of Akzo Nobel and Organon.