Acquisitions And Mergers Continue, Led By Novartis

The formation of Novartis through the "merger of equals" by the Swissfirms Sandoz and Ciba-Geigy stands out among the mergers and acquisitions that took place during 1996.

The birth of Novartis took the consolidation of the global drug industry a stage further, and altered the global ranking of drug companies, as the formation of Glaxo Wellcome did in 1995. It also increased the pressure in the top-tier companies such as Merck & Co, Glaxo Wellcome and fellow Swiss firm Roche, with its market capitalization of 100 billion Swiss francs ($75.76 billion).

Sandoz and Ciba first announced their intentions to merge in March. The European authorities gave their approval in July, and the US Federal Trade Commission took nine months to reach its decision, which came on December 17. The official birth of Novartis was December 20 and the shares started trading on the Swiss Stock Exchange on December 23 (Marketletter December 23).