Merckles to sell Ratiopharm as credit approved

TheStar.com - Business - Merckles to sell Ratiopharm as credit approved
January 08, 2009

FRANKFURT–The family holding company of dead German tycoon Adolf Merckle got a long-awaited bridge loan from banks yesterday, in a deal that will force it to sell Ratiopharm, the world's fourth-largest generic drugs maker.

The family's VEM Asset Management investment vehicle said its creditor banks had transferred the bridge loan after weeks of tough talks. Financial sources had earlier told Reuters the loan was for 400 million euros ($545 million U.S.).

"We are very happy to have found a solution," VEM head Ludwig Merckle, one of Adolf's four children, said in a statement.

The loan, which buys the family time to work out a broader restructuring of the business empire that Merckle built up over the past 40 years, comes less than two days after he threw himself in front of a train.

In addition to Ratiopharm, the Merckle family controls HeidelbergCement and drug wholesaler Phoenix Group as well as a diverse portfolio of other business investments that helped put Merckle in the ranks of the world's wealthiest people.

Under the deal, a trustee named by VEM and its banks will guide the sale process for Ratiopharm and Ludwig Merckle will also have to step down as VEM chief, the statement said.

Reuters News Agency