Plus   Neg

Fresenius Terminates $4.3 Bln Akorn Takeover; Akorn Says Enforce Its Rights

Fresenius (FSNUF.PK) said it has decided to terminate the company's merger agreement with Akorn Inc.(AKRX), due to Akorn's failure to fulfill several closing conditions.

Fresenius said its decision is based on material breaches of FDA data integrity requirements relating to Akorn's operations found during Fresenius' independent investigation. Fresenius offered to delay its decision in order to allow Akorn additional opportunity to complete its own investigation and present any information it wished Fresenius to consider, but Akorn has declined that offer.

Meanwhile, Akorn said it categorically disagrees with Fresenius' accusations. The previously disclosed ongoing investigation, which is not a condition to closing, has not found any facts that would result in a material adverse effect on Akorn's business and therefore there is no basis to terminate the transaction. Akorn said intends to vigorously enforce its rights, and Fresenius' obligations, under binding merger agreement.

On April 24, 2017, Fresenius Kabi announced it agreed to acquire Akorn, a U.S.-based manufacturer and marketer of prescription and over-the-counter pharmaceutical products, for approximately $4.3 billion, or $34.00 a share, plus the assumption of about $450 million of debt. Closing was expected by early 2018.

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