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Hoechst deal gets green light
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May 13, 1999: 10:21 a.m. ET
Kuwait OKs merger creating $60B French-German life sciences giant
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LONDON (CNNfn) - Kuwait gave its blessing to the revised merger of European chemicals and pharmaceuticals giants Hoechst and Rhône-Poulenc Thursday.
Kuwait, through Kuwait Petroleum Corp., owns a 25 percent stake in Germany's Hoechst, and had indicated earlier its unhappiness with the original terms of the deal.
Earlier this week, the boards of Rhône and Hoechst approved the new terms, which include a faster move toward creating the new company, a life sciences giant called Aventis. The firm, calculated by analysts to have a market value of 56 billion euros ($60 billion) will be based in Strasbourg, France.
Reuters reported Kuwait as saying, "The board of KPC has reviewed the proposed merger and has given its support in principle to the transaction."
The European companies said earlier this week that they wouldn't proceed with the deal unless the KPC voted in favor.
There was a suspicion the deal could collapse in chaos earlier this week, when the two partners canceled press conferences meant to announce the final terms of the deal.
Rhône-Poulenc and Hoechst officials couldn't be reached for comment. 
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Hoechst
Rhône-Poulenc
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