Sigma-Aldrich to be acquired by Merck KGaA

Sigma-Aldrich has announced that it is to be acquired by the German pharmaceutical and chemicals conglomerate Merck KGaA in a $17 billion (10.38 billion pounds) deal.

The group – which currently counts Merck Serono and Merck Millipore among its subsidiaries – has agreed to purchase Sigma-Aldrich to establish it further as a leading player in the $130 billion global life science industry.

With this takeover, Merck Millipore's global reach will be greatly expanded in North America and fast-growing Asian markets, with Merck KGaA planning to maintain Sigma-Aldrich's US presence in St Louis and Billerica.

It will more than double the contribution of the life sciences sector to the group's annual earnings.

Rakesh Sachdev, president and chief executive officer of Sigma-Aldrich, said: "This transaction is a clear validation of our success in transforming Sigma-Aldrich into a customer-focused and solutions-oriented global organisation."

Sigma-Aldrich has seen a strong financial performance in recent months, achieving a record-breaking sales total of $701 million during the second quarter of 2014.