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Mergers, Acquisitions, Alliances and Synergies Case Study
Case Title:
Novartis' Acquisition of Aventis : The Potential Synergies
Publication Year : 2004
Authors: V. Bala Kiran, Sumit Kumar Chaudhuri
Industry: Pharmaceutical Manufacturers
Region: France
Case Code: MAA0018
Teaching Note: Not Available
Structured Assignment: Not Available
Abstract:
After Aventis rejected the hostile takeover bid of Sanofi-Synthelabo on the grounds of financial inadequacy in January 2004, it approached Novartis, the Swiss drug manufacturer, to acquire it and save it from the potential acquisition. Although the Novartis-Aventis combination had the potential to form the second largest pharmaceutical company in the world with combined revenues of $47 billion, the French government was against the takeover of Aventis by a foreign company.
Pedagogical Objectives:
- To discuss the probable synergies in case Aventis is acquired by Novartis.
Keywords : Ciba-Geigy;Mergers, Acquisitions, Alliances Case Study; Sandoz; Global pharmaceutical companies; Mergers and acquisitions; Sanofi-Synthelabo; Aventis; Novartis AG; Hostile takeovers; Hoechst AG; Prescription drugs; Rhone-Poulenc SA; Pfizer; Merk & Company; Anti-diabetic drugs; Anti-cancerous drugs