Meda completes 3M pharmaceuticals acquisition in Europe

Pharmaceutical Company Restructures

Meda has announced that, following approval from all relevant competition authorities, it has completed its acquisition of the pharmaceutical division of 3M in Europe and will take on all its operations.

The preliminary price for this transaction is SEK 5,640 (523 million pounds), with this amount being financed by a bank loan and refinancing occurring in part through the issuing of shares to the maximum value of SEK 1,867 million.

When the companies signed their agreement of acquisition on November 9th 2006, the purchase price was set as SEK 6,200 million, a price lowered to around SEK 5,900 million by exchange rate effects.

The remainder of SEK 260 million is attributed to employee related liabilities and working capital adjustments that will be assumed by Meda.

Following the deal, Meda will become the largest specialty pharmaceutical company in Europe, with sales of over SEK 7 billion.

"3M's pharma division markets important specialist products such as Aldara, Tambocor and Minitran in Europe," Meda reports.

"Meda can achieve important synergy effects through a stronger marketing organisation in major countries such as France, Germany, Italy, Spain and the UK," it added.

In December 2006, Meda announced a forthcoming extraordinary general meeting to take place on January 10th 2007, with shareholders to confirm their attendance by January 3rd.

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