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A Win-Win As Novartis Sells Roche Stake

Deal Worth Whopping $20.7bn

 
• By Kevin Grogan

Over two decades since it first invested in its rival from across Basel, Novartis is selling back more than 50 million shares to Roche and banking billions of dollars that will likely be used for bolt-on acquisitions.

basel
Basel is home to both Novartis and Roche • Source: Alamy

After over 20 very profitable years, Novartis AG is to sell its considerable stake in fellow Swiss giant Roche Holding AG for $20.7bn, a sum that will swell its war chest for future acquisitions, dividends and buybacks.

Novartis first became a stockholder of Roche in May 2001 and between then and 2003, it invested around $5bn to buy 53.3 million shares, representing approximately 33% of its outstanding bearer shares. That investment delivered an annualized return of 10

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