Pfizer, Wyeth boards approve merger in India

MUMBAI: The boards of Pfizer and Wyeth approved a merger on Saturday, which would create a combined entity of a turnover of around Rs 2100 crore. The boards of both companies approved a swap ratio of 7:10, seven shares of Pfizer for every 10 shares held by shareholders of Wyeth India.
Based on the proposed swap ratio, Pfizer India will issue approximately 15.9 million new equity shares to Wyeth India shareholders.
The boards also announced an interim dividend of Rs 360 and Rs 145 per share respectively.
Aijaz Tobaccowalla, Managing Director, Pfizer India and Wyeth India, said "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."