P&G to buy majority stake in Merck India

Global FMCG major, Procter & Gamble Company (P&G) plans to hold 51.80 per cent voting share capital of Merck Limited (India). The company has made an mandatory open offer for 26 per cent stake of the consumer healthcare company from public shareholders on the Indian exchanges. 

P&G has appointed ICICI Securities as the Manager for the open offer. ICICI Securities informed the exchanges that P&G has made an open offer to acquire 43,15,840 fully paid up equity shares of face value of Rs. 10 each of Merck Limited, this represents 26 per cent of total outstanding capital of the company. 

This open offer is a consequence of a global transaction between P&G and Germany-based parent company Merck KGaA, wherein Merck is selling off its portfolio of consumer healthcare products. For a majority stake in the Indian arm, P&G plans to buy stakes from Emedia Export Co. MBH, Chemitra GmbH and Merck Internationale Beteiligungen GmbH, who together hold 85,99,224 equity shares. 

The transaction is proposed at Rs. 1,500 per fully paid up equity share and aggregates to Rs. 1,289 crore giving P&G a 51.80 per cent holding in Merck Limited (India). The major products in Merck's consumer health care portfolio are Nasivion, SevenSeas Original, Maxepa, Electrobion and Evion Cream. 

Meanwhile, the Indian arm of P&G, Procter & Gamble Hygiene & Health Care closed at Rs. 9,758.30 per share, down 0.37 per cent, while Merck Limited closed at Rs. 1,791.55, up by 18.65 per cent.