BASF sells pharma business to Abbott Labs for $6.9 billion in cash

Fooling most observers, Germany's BASF announced on December 15 that itis quitting the pharmaceutical business to concentrate on innovative chemistry, and is selling BASF Pharma, which includes the Knoll operations, to US drugmaker Abbott Laboratories for a consideration of $6.9 billion. The sell-off comes as no surprise, since it had been rumored for a month or so, but the speculation had focussed on the suitor being Eli Lilly.

The agreement, which has been approved by both companies' boards of directors, covers all German and international operations of BASF pharma and is subject to approval by regulatory agencies and customary closing conditions. Completion of the transaction, which is to be paid in cash, is scheduled for first-quarter 2001.

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