New major M&A deals in the chemical and pharmaceutical sectors

The recent surge in M&A deals in the chemical and pharmaceutical sectors is continuing with a spate of major new transactions.

In an agreement reached a few days ago, Novartis will sell its 36.5% stake in the joint venture set up in 2015 for the production and sale of over-the-counter drugs to the British group GlaxoSmithKline. The value of the transaction, which will be concluded in the second quarter of 2018, is US $13 billion. In 2017 the over-the-counter drugs business in the UK generated revenues of £7.8 billion (€8.9 billion) and saw EBITDA surge from 11.3% in 2015 to 17.7% in 2017.

Novartis has also secured an agreement to acquire the US gene therapy company AveXis for a total of $8.7 billion in cash. In another major deal signed in the chemicals sector, US fund Carlyle group has acquired the specialty chemicals business area of Akzo Nobe, a Dutch multinational specialising in the production of paints and coatings and other chemical products. The value of the transaction is €8.9 billion.