Merck KGaA beats Thermo Fisher to acquire Millipore for $7.2 billion

German pharmaceutical giant Merck KGaA said on Sunday that it has agreed to acquire purifiers and filters maker for biotechnology laboratories Millipore Corporation for $7.2 billion, including debt, in order to expand its business into the life science sector.

The acquisition dashed the ambitions of the world's largest maker of lab instruments, the Massachusetts-based Thermo Fisher Scientific Inc, to acquire its smaller rival Millipore and create a company with about $11.8 billion in annual revenues.

Last week, Bloomberg had reported that Thermo Fisher had reportedly made a $6-billion unsolicited takeover offer for its smaller rival Millipore Corporation. (See: Thermo Fisher plans to acquire Millipore for $6 billion: report)

Darmstadt, Germany-based Merck KGaA will pay $107 a share, a 13 per cent premium to Millipore's closing price on 26 February, which is a 50 per cent premium to Millipore's price on 19 February, the day before Bloomberg reported Thermo Fisher's bid for Millipore.

Merck said in a statement that it would acquire all outstanding shares of common stock of Millipore, for $107 per share in cash, or $6.03 billion.

The transaction, which was approved by the boards of directors of both companies, is valued at a total of $7.2 billion, including assumed debt.