Tag Archives: Abbott Miles White WSJ DoJ HSR Merial Intervet Pfizer Wyeth Animal Health FTC Hart Scott Divestitures Overlap Sanofi ECC Antitrust Reverse Merger October 23 2009

Some More — On Headcount Thoughts, US v. Europe

UPDATED — 10.23.09 @ 10:00 PM EDT: Another anonymous commenter, below, offers this speculation:

. . . .There will be serious overlap, as well as an over staffed sales-force in the U.S. IMO.

New Merck could easily get twice the attrition they want by offering older employees decent packages, but then there would be no one left!

Why would they let the overseas coleagues go? That’s where 70% of sales and most of the growth is coming from at SP.

Murphy’s law, if you want a package it won’t be offered. If you want to stay, then a package will be forced upon you. . . .

October 23, 2009 9:42 PM

I guess all I’d add, by way of observation (not even dissent, really) is that — in Europe, at least, I think the Animal Health businesses will face some significant headcount pressure, post-close, at least if one takes Sanofi’s CEO at his word — that he is very likely to exercise the 100 day “call option” to acquire for “New” Merial, all of “Old” Schering-Plough’s Intervet, from “New” Merck. The central feature of the slide describing this portion of the deal was “cost synergies“, on July 30, 2009:

That’s slang for down-sizing the employee population.

Indeed, Schering/Merck Was Granted An ECC “Hall Pass” Today

UPDATED: 10.23.09 @ 7 AM EDT — The “Hall Pass” was granted, this morning in Brussels. Now we await US FTC/DoJ clearance, and then — as I indicated below, the Intervet Call Option fireworks. [The original posting of this item was 10.22.09 @ 2:26 PM EDT.]


If — at around 4 a.m. EDT, tomorrow morning — the right hand margin of this ECC Journal link contains an “en“, with a live-link attached to it, you’ll know that the European Competition Commission has officially granted the deal (the Merck/Schering-Plough reverse merger portion, anyway) a “hall pass“.

This pass will be good until the Sanofi-Merial 100-day call option (on the Intervet businesses) is exercised — then the “competition review fun” will begin in earnest:

. . . .18 September 2009

Prior publication in Official Journal

Provisional deadline: 23 October 2009. . . .

Of course — even if the ECC is wholly-obliging tomorrow morning, our time — that still leaves the US FTC/DoJ HSR process to contend with.