Pfizer India and Wyeth Ltd to merge

Wyeth Ltd, one of the leading players in vaccines and women’s health market in India, and Pfizer India have agreed to merge their operations in India. “The Board of Directors of Pfizer Ltd and Wyeth Ltd, in their respective meetings have approved a proposal to merge Wyeth India with Pfizer India. The Board of Directors of Pfizer India and Wyeth India have also announced an interim dividend of Rs 360 per share and Rs 145 per share respectively,” said the two companies in a press statement on November 23, 2013.
 
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According to Aijaz Tobaccowalla, Managing Director, Pfizer India and Wyeth India, the merge is first important step towards the creation of a single Pfizer brand. “This merger will increase long term value for all stakeholders. The combined entity would have an increased therapeutic presence and a de-risked business profile. The merger process would require several approvals and we anticipate this will take approximately another nine months,” he added.
 
As per the scheme, the shareholders of Wyeth India will be issued shares of Pfizer India at a swap ratio which has been determined as 7 shares of Pfizer India for every 10 shares held by the shareholders of Wyeth India. Based on the proposed merger swap ratio, Pfizer India will issue approximately 15.9 million new equity shares to Wyeth India shareholders, as consideration for the merger.
 
Wyeth Ltd became a subsidiary of Pfizer India as a consequence of Wyeth USA’s merger with Wagner Acquisition Corporation, a wholly-owned subsidiary of Pfizer Inc, in October 2009.