Novartis buys a big chunk of Roche's voting shares

Swiss company Novartis has acquired 32m bearer shares of Roche, representing 20% of that company's voting shares. These shares were purchased as a package from BZ Gruppe Holding for approximately US$2.8bn (€2.4bn). The purchase makes Novartis the second-largest holder of Roche shares, after the 50.1% block held by the Hoffman and Oeri-Hoffman families.

Dr Daniel Vasella, chairman and ceo of Novartis commented, 'This is a long-term financial investment, which is also strategic in nature. We believe that we were the most logical buyer of the Roche share package offered by the BZ Gruppe. At present, no collaboration has been discussed with Roche management, although we hope that over time we will be able to explore areas of collaboration as Roche has good long-term business prospects.'

If the two merged, they would join Pfizer and GSK with sales in excess of US$20bn p.a. However, Vasella is reported being 'determined not to enter into a hostile bid situation for Roche'. It is more likely that Vasella will reduce Roche's options by making it difficult for the company to make any major acquisitions.