Take over boosts Schering-Plough’s animal healthcare range

Schering-Plough has boosted its portfolio of animal healthcare products after it bought one of the world’s largest animal health businesses, Organon BioSciences, for £7.47bn.

The sale came as a surprise to investors, who had been preparing for the 30% of the company to be offered to the public.

Instead Schering-Plough snapped up Organon, the fledgling animal healthcare company of Dutch chemicals giant Akzo Nobel.

Fred Hassan, Schering-Plough chief executive, said the acquisition would make the business one of the world leaders in its sector.

Organon’s animal health business, Intervet, saw sales reach £766m in 2006, while Schering-Plough already has a large animal health business, with sales reaching £464.7m last year.

Mr Hassan said the company would not cut jobs for at least one year, adding that he did not see much overlap between the two businesses.

The sale is expected to be completed by the end of the year.