Sanofi, Boehringer agree to swap assets

After six months of negotiations, Sanofi and Boehringer Ingelheim have finalized a $25 billion deal to exchange Merial, Sanofi’s animal health unit, for Boehringer’s consumer health care business. Merial is being valued at $12.6 billion and the consumer health business at $7.4 billion. To make up the difference, Boehringer will pay Sanofi $5.2 billion in cash. Pending regulatory approvals, the swap is to be completed by the end of the year. Boehringer’s animal health business will more than double in size to an estimated $4.2 billion in annual sales. Sanofi’s consumer health sales should hit $5.4 billion.