Glaxo clinches £9bn bid

Glaxo declared its £9bn bid for Wellcome unconditional yesterday, confirming the creation of the world's largest pharmaceuticals company and starting a process of integration which the two companies' employees fear could lead to the loss of 15,000 jobs.

Sir Richard Sykes, Glaxo chairman, said: "Glaxo Wellcome will combine the strengths of two great companies and will be well-positioned to meet the fundamental changes taking place in the industry."

Yesterday's announcement follows the expiry of a mandatory US regulatory waiting period, the final hurdle in the bid. Glaxo has agreed with the Federal Trade Commission to dispose of one of Wellcome's anti-migraine treatments as a condition of the deal going through.

By Wednesday, Glaxo had received acceptances on behalf of 86.1 per cent of Wellcome's shares, well ahead of the 50 per cent target it had set for declaring the bid unconditional. As a result Wellcome shareholders will not now receive a 16p dividend from the company, getting instead a 13.5p payment from Glaxo Wellcome, the combined company which officially comes into existence on 1 May.

Wellcome's migraine drug, 311C90, is one of a number under development by the company to broaden its largely anti-viral base. Glaxo already has a leading migraine drug, Imigran, which had sales of £154m in 1994, 55 percent in the US.

The merger, announced on 23 January, is Britain's biggest successful deal. It creates the world's largest pharmaceuticals group, with annual sales of £8bn and leading positions in ulcer, respiratory, cancer, antibiotic and anti-viral drugs, including Wellcome's Retrovir anti-Aids and Zovirax herpes products.