Procter & Gamble will acquire 51.80 per cent stake for Rs 1,289.88 crore in India listed drug firm Merck Ltd as part of a global deal under which it is taking over German firm Merck KGaA's international consumer health business.
The global deal is for about 3.4 billion euro (Rs 27,677 crore) in cash.
P&G will acquire Merck's majority shareholding in Merck Ltd. (India) and make a mandatory tender offer to minority shareholders.
In a regulatory filing, Merck Ltd said Procter & Gamble Overseas India B.V and The Procter & Gamble Company have launched an up to Rs 647.53 crore open offer to acquire up to 4,315,840 equity shares of Merck Ltd, constituting 26 per cent stake from public shareholders.
The open offer document said: "The acquirer (Procter & Gamble Overseas India B.V and The Procter & Gamble Company) has entered into a sale and purchase agreement...wherein it is proposed that the acquirer shall purchase from Emedia Export Company MBH, Merck Internationale Beteiligungen GmbH and Chemitra GmbH 8,599,224 equity shares...which constitutes 51.80 per cent of the voting share capital."
On the impact of the global transaction in India, Merck Ltd said: "As part of the transaction, Merck and P&G have agreed to a number of manufacturing, supply and service agreements."
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