Novartis shareholders have approved the proposed merger of Alcon, Inc. into Novartis. In addition, shareholders also approved the issuance of up to 108 million shares which will be used as part of the transaction to exchange Alcon shares for Novartis shares.
Dr Daniel Vasella, chairman of Novartis said, "With Alcon, we will add eye care as a fifth growth platform alongside innovative pharmaceuticals, generics, vaccines and diagnostics, and consumer health. The strong Novartis presence around the world, including in emerging markets, will open new growth prospects for the combined businesses. Novartis and Alcon can be expected to profit from the combination of complementary research and development activities and ultimately benefit patients suffering from eye diseases worldwide."
"The new Alcon Division will cover more than 70 per cent of the eye care segment with more than USD 9 billion in annual revenue," said Joseph Jimenez, CEO of Novartis. "Following the close of the transaction we will proceed rapidly to reduce the time of uncertainty for all associates by providing clarity on structure and operations. We are confident that we will be able to conclude the integration within six months after the completion of the merger."
A total of 687 shareholders were present at the meeting held in Basel, representing 1,27 billion shares or 48.25 per cent of the 2,64 billion issued shares of Novartis. The vote by more than two thirds of Novartis shareholders follows the positive vote on the transaction by more than two thirds of Alcon shareholders at the Alcon annual general meeting on April 7, 2011. The companies plan to proceed quickly with the transaction close to begin integration of the businesses and establishing a globally leading eye care business.