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Nestlé completes sale of Alcon to Novartis

Nestle announced Thursday it had finalized the sale of Novartis's 52% that remained in Alcon for $ 28.3 billion (22.3 billion euros).

Nestle has received a total of 41 billion dollars selling American specialist in ophthalmology, if one takes into account the three stages of disinvestment, namely the initial IPO of 23.25% in 2002, sale of 24.8% in 2008 and the last transaction with Novartis, conducted Wednesday, said the world number one agribusiness in a statement.

Nestle, which had acquired Alcon in 1977 for 280 million dollars, now intends to "significantly reduce its net debt, which amounted to 29.6 billion at end June 2010.

Novartis now controls 77% of Alcon and its later clarified in a separate statement that its initial tranche of 25% had already recorded a gain of $ 200 million for the year.

The integration costs of $ 140 million, spread over three years and will save annual synergies of 200 million dollars, said pharmaceutical group.

This year however, will be impacted by charges of 140 million, including transaction costs.

The acquisition will be neutral to earnings per share in 2010 and 2011 but should be accretive as this year for basic EPS ('core').

Novartis is now looking to buy the remaining 23% but the independent directors of Alcon opposed to the proposed price of 2.8 shares per share Novartis Alcon, which is 15% less than the $ 168 per share paid Nestlé.

Swiss law allows Novartis to adopt such an approach but does not guarantee the success of its offer to minority shareholders.