Additionally, Novartis submitted a proposal to Alcon’s board of directors to acquire the remaining 23% of its publicly-traded shares. Under this proposal, holders of Alcon’s publicly-traded shares would receive 2.8 Novartis shares for each Alcon share purchased. Based on Novartis’ current share price, this transaction would value each publicly-traded share of Alcon at $153, resulting in purchase price of approximately $11.3 billion.
Novartis’ acquisition of Alcon’s publically-traded shares is still contingent upon finalization of the Nestle transaction, approval from both Novartis’ and Alcon’s board of directors, and two-thirds approval from both Novartis’ and Alcon’s shareholders.
If all deals are completed, the total estimated value of Novartis’ purchase of Alcon would be worth $49.8 billion.
Following this announcement, Novartis’ CEO of consumer health, George Gunn, commented on how the acquisition would impact CIBA Vision. “As the fastest growing contact lens company in 2009, CIBA Vision will continue to be a valuable contributor to the overall Novartis position in eye care,” he said. “Once full ownership of Alcon is achieved, Novartis plans to integrate CIBA Vision into Alcon and create a new eye care division that will immediately be a sector leader.”
Kevin Buehler will continue to lead Alcon, and will become head of the new division upon completion of the merger, Mr. Gunn added. Also, Andrea Saia will remain as head of CIBA Vision’s contact lens business unit.
