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Merck KGaA agrees $6.5 billion takeover of Versum

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By Reuters
Merck KGaA agrees $6.5 billion takeover of Versum
FILE PHOTO: A logo of drugs and chemicals group Merck KGaA is pictured in Darmstadt, Germany January 28, 2016. REUTERS/Ralph Orlowski/File Photo   -   Copyright  Ralph Orlowski(Reuters)

FRANKFURT (Reuters) – Germany’s Merck KGaA said it signed a takeover agreement with target Versum Materials for a price of $53 per share after Versum walked away from a prior merger agreement with rival Entegris.

Merck is targeting 75 million euros (64.9 million pounds) in run-rate synergies by the third full year after closing of the deal, which it expects in the second half of 2019, it said in a statement on Friday.

Including about $700 million in assumed Versum debt and based on about 109 million shares, Merck’s bid translates into a overall price tag of close to $6.5 billion (4.97 billion pounds).

(Reporting by Ludwig Burger; editing by Thomas Seythal)