Lonza sinks on concern over Capsugel takeover bid

Monday, 12. December 2016 13:00

Lonza Group plunged to the lowest level since July in Zurich on Monday after it confirmed ongoing negotiations about the acquisition of New Jersey–based Capsugel, manufacturer of capsules for the dosage of oral medicine and supplements. The Swiss chemicals and biotechnology firm intends to take over the target entity from private equity investor KKR and Co. LP from New York City.

Capsugel, which was owned by Pfizer until 2011, "would fit perfectly with Lonza’s healthcare continuum strategy" and add manufacturing strength for supplying several overseas markets, Lonza said in a reaction to speculation in the media, which estimated the potential deal to be worth more than $5 billion. Reports indicated there were more companies interested in buying the business.

Shares in Lonza dropped 6.85% to 165.9 francs at 12:41 p.m. CET, after going as low as 165 francs. At the same time, the broad SPI index shed 0.42%.

 

Image: EPA / Markus Stücklin

Related Links: Lonza Group AG
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