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McKesson bid to buy Celesio falls short
January 13th, 2014
SAN FRANCISCO – McKesson Corp. said it has failed to gain the necessary shareholder support for its $8.4 billion deal to acquire Germany-based pharmaceutical distributor Celesio.
McKesson announced Monday afternoon that it wasn't able to reach the 75% completion condition in its offer for Celesio's outstanding shares and convertible bonds.
McKesson had made its initial offer for Celesio in October. The proposed acquisition would have boosted McKesson's leverage in negotiations with generic drug manufacturers and broadened its footprint geographically.
McKesson said in October that it had agreed to buy the 50.01% stake in Celesio held by Franz Haniel & Cie GmbH, a family-owned investment company, for 23 euros ($31.41) per share, and it began a tender offer for the remaining publicly traded shares. It raised the bid offer last week to a value of about 4 billion euros ($5.4 billion).
Last Thursday, in what it called its "best and final offer," McKesson raised the purchase price to 23.50 euros ($32.10) per share.
"While we are disappointed that we were not successful in completing our offers for Celesio, we have a track record of great performance, a strong balance sheet and demonstrated leadership and scale across our markets," McKesson chairman and chief executive officer John Hammergren said in a statement on Monday. "We are well-positioned and will continue to explore and evaluate opportunities to further strengthen our businesses through our disciplined approach to capital allocation."
Stephan Gemkow, CEO of Haniel, expressed disappointment that McKesson's effort fell short.
"McKesson would have been a very good partner for the ongoing strategic development of Celesio," Gemkow said in a statement. "Thus, it is a pity that the takeover bid has failed."