Novartis, one of the largest and most widely respected pharmaceutical companies in the world, are set to buy the rest of Nestle’s stake in Alcon, the eye care company for $28.1 billion. Not only that, but it is also offering to buy out the minority shareholders too. According to the New York Times, this is the most expensive Swiss buyout in history.
Novartis’ Chief Daniel Vasella’s states the deal is part of the Swiss companies diversification plans. While Novartis already works in eye care, by adding Alcon into the mix, Novartis is set to dominate over 70 per cent of the market.
Eye care is predicted to grow faster than any other sectors of the healthcare market due to an ageing population, so, according to Daniel Vasella’s, this is a good move for Novartis, “The addition of Alcon will strategically strengthen our healthcare portfolio and our position in eye care, a sector with dynamic growth due to the increasing patient needs of an aging population,”