Sanofi-Aventis and Pfizer were both reported to be interested in acquiring the Mumbai, India-based drug maker but Abbott has now entered into a definitive agreement.
Abbott will pay $2.12bn upfront for the unit, plus $400m annually for the next four years. The Piramal unit will become part of Abbott’s newly created, stand-alone established products division.
Piramal’s unit employs more than 5,000 people in India. Abbott currently has more than 2,500 employees across all its businesses in India. The deal follows Abbott’s acquisition of Solvay Pharmaceuticals and recent collaboration with Zydus Cadila.