Roche clinches Genentech deal for $47 billion

12 March 2009

Roche has closed a deal with Genentech, ending their protracted takeover battle, with a friendly accord, under which the Swiss healthcare giant will pay $95 a share to acquire the remaining stake in the biotechnology major.

Under the merger agreement signed between the two companies, Roche will acquire the outstanding publicly held interest in Genentech for $95.00 per share in cash, or a total payment of approximately $46.8 billion to equity holders of Genentech other than Roche. 

The special committee of Genentech's board of directors has approved the agreement and recommended that Genentech shareholders tender their shares in Roche's tender offer. 

The combination of Roche and Genentech will create the seventh largest US pharmaceuticals company in terms of market share, with combined annual revenues of $17 billion.

Roche plans to operate the research and early development centre in South San Francisco as an independent unit and combine its US commercial operations there.

Genentech will be maintain its present character, which will be enhanced through a diversity of research approaches and sharing of IP, technologies, partnerships and other key assets, the company said in a release.