McKesson acquisition of German rival Celesio fails

USA-based health care service and information technology giant McKesson Corp (NYSE:MCK) revealed yesterday that it was unsuccessful in reaching the 75% completion condition in its offer for the outstanding shares and convertible bonds of Celesio (CLS1: XE).

McKesson launched its $8.3 billion bid to acquire a 50.01% stake in its German rival last year, with the aim of gaining full control eventually (The Pharma Letter October 24, 2013). However, Celesio shareholders – notably the activist hedge fund Elliott Associates - rejected this offer, as well as a more recent increased “best and final” offer last week of $23.50 per share, compared with the original $23.00.

“While we are disappointed that we were not successful in completing our offers for Celesio, we have a track record of great performance, a strong balance sheet and demonstrated leadership and scale across our markets,” said John Hammergren, chairman and chief executive of McKesson, adding: “We are well positioned and will continue to explore and evaluate opportunities to further strengthen our businesses through our disciplined approach to capital allocation.”