An on-off relationship
Article Abstract:
The planned merger between Glaxo Wellcome and SmithKline Beecham did not materialize as a result of disagreements regarding the management structure in the unified organization. The integration would have been the biggest in corporate history, resulting in a market capitalization of over 100 billion pounds sterling and a yearly turnover of about 16 billion pounds. It also would have led to substantial cost savings and the biggest R&D budget in the pharmaceutical industry. However, the deal was publicly announced too early, which meant that hasty decisions were made and no basic ground rules established. It was clear that Glaxo wanted to dominate the merger, with its chairman Sir Richard Sykes demanding the early retirement of his SmithKline Beecham counterpart Jan Leschly. The lessons learned from this failed merger are apparently being heeded by others in the industry, as evidenced by the behavior of executives in other mergers.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1999
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ICI: will the ball and chain have to go?
Article Abstract:
Industrial Chemicals Industries PLC (ICI) has announced its intention to demerge into two separate companies. Under the demerger plan announced in Jul 1992, ICI would spin off its profitable pharmaceuticals division, along with its seeds and agrochemicals divisions, into a new business entity to be known as ICI Bio. ICI's paints, materials, explosives and chemicals division, on the other hand, would be reorganized into a separate business group that would retain the ICI name. The demerger plan is the latest and most radical step taken in ICI's decade-long quest to transform itself from a bulk chemicals company dependent on UK sales to an 'effect' chemicals specialist with a global sales reach. A timetable for the implementation of the plan is set to be announced in Feb 1993. However, speculation runs strong that the demerger plan may be postponed if industry conditions do not improve.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1992
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Vaccines market gets a shot in the arm
Article Abstract:
Anglo-American pharmaceutical company SmithKline Beecham (SKB) successfully acquired East German vaccine producer Sachsisches Serumwerk GmbH (SSW) after prolonged negotiations with the Treuhandanstalt privatization agency. The Treuhand favored the bid of SKB over rival bidder Boehring for three reasons: it did not want Boehring to monopolize the flu vaccine market in Germany, SKB is more renowned worldwide, and it wanted to attract more foreign investors to East Germany. With the purchase of SSW, SKB effectively gains entry into the flu vaccine market where it previously had no presence. SKB also hopes to improve its position in Germany where it is only the 22nd largest pharmaceutical supplier, despite being the second biggest vaccine producer in the world.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1992
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