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Roche Completes Takeover of Genentech

The Associated Press

BASEL, Switzerland -- Swiss pharmaceutical giant Roche said Thursday it has completed its $46.8 billion takeover of California biotech firm Genentech(DNA).

Roche, which already held 55.7% of Genentech stock, said it acquired a further 37.5% of shares by the offer deadline on Wednesday.

Roche said it has been guaranteed the transfer of a further 3% of Genentech shares in the coming days, taking its total holding to 96.2% and allowing the two companies to undergo a short-form merger.

The deal ends Roche's long-running effort to take control of Genentech and secure the South San Francisco, Calif.-based biotech company's lucrative product portfolio, including the cancer drug Avastin.

Genentech's board twice rejected Roche's advances until the Basel-based firm raised its offer to $95 a share.

Roche expects to save $750 million to $850 million a year through the takeover, but has not said how many jobs could be lost.