Pfizer, Wyeth Indian units to merge

The Indian unit of global pharma company Pfizer Inc is to take over local affiliate Wyeth Ltd. The company already owns 51.12% of Wyeth Ltd, which in turn owns 63.57% of Pfizer Ltd, as the unit in India is known. Both Boards of Directors have approved the deal.

The deal means that shareholders of Wyeth will get seven Pfizer Ltd shares for every 10 shares held, requiring the issue of approximately 15.9 million new Wyeth shares. Both companies will pay interim dividends of 360 rupees and 145 rupees per share respectively.

Wyeth Ltd has a market capitalization of about $294 million and Pfizer Ltd has a market capitalization of $681 million.

"I am very pleased to announce that today the Board of Directors of Pfizer Ltd and Wyeth Ltd have given their approval to merge the two companies thus initiating an important first step towards the creation of a single Pfizer brand. I strongly believe that 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."

Aijaz Tobaccowalla, Managing Director, Pfizer India and Wyeth India.

In 2009, Pfizer Inc bought rival Wyeth, but both companies left their Indian units with separate stock market listings.