Merck KGaA agrees US$6.5 billion takeover of Versum

Germany’s Merck KGaA said it signed a takeover agreement with target Versum Materials for a price of US$53 per share after Versum walked away from a prior merger agreement with rival Entegris.

FILE PHOTO: FILE PHOTO: A logo of drugs and chemicals group Merck KGaA is pictured in Darmstadt FILE PHOTO: A logo of drugs and chemicals group Merck KGaA is pictured in Darmstadt, Germany January 28, 2016. REUTERS/Ralph Orlowski/File Photo

FRANKFURT: Germany’s Merck KGaA said it signed a takeover agreement with target Versum Materials for a price of US$53 per share after Versum walked away from a prior merger agreement with rival Entegris.

Merck is targeting 75 million euros (US$85 million) in run-rate synergies by the third full year after closing of the deal, which it expects in the second half of 2019, it said in a statement on Friday.

Including about US$700 million in assumed Versum debt and based on about 109 million shares, Merck’s bid translates into a overall price tag of close to US$6.5 billion.

(Reporting by Ludwig Burger; editing by Thomas Seythal)