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Operational merger of Knoll, Abbott by July

Rajesh Unnikrishnan

The operational merger between Knoll Pharmaceuticals and Abbott Laboratories is likely to be completed by July.

Clare Williams, regional director (human resources development) of Abbott Laboratories is understood to have visited the country recently for final negotiations with the two managements to finalise the nitty-gritty of the merger process. Preliminary works for gathering of financial information, employee data and related clarifications are also on.

Both the companies are working on product as well as manpower rationalisation and the final picture will be clear by June-end, sources said. However, the legal merger will be delayed further due to procedural delays.

According to senior Abbott executives, as per the current plans, the operational merger between these two will take place by the end of July.

Abbott Equity Holdings and Abbott Laboratories India have made an open offer to acquire up to 20 per cent of the equity capital of Knoll Pharmaceuticals India for Rs 328 per share last week, which result in an outgo of Rs 1.08 billion.

On December 15, 2000, Abbott and BASF AG had signed an agreement for the purchase of latter's pharmaceutical arm, Knoll Pharma, globally for a price of $6.9 billion.

Analysts said there is virtually no product overlap between the two. Knoll, with sales of Rs 3.33 billion in 2000 ranked seventh in the domestic formulations market, with dominant leadership in anti-diabetic insulin and a presence in antacids, cough and cold and anti-inflammatory segments.

Abbott India, with sales of Rs 967 million in fiscal 2001 has a major presence in anti-infective, vitamins, genito-urinary, anaesthesia, dermatology and anti-fungal therapeutic segments.

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