CSL-Vifor takeover rumors confirmed

Dec. 14, 2021

Australia's CSL will acquire Swiss drugmaker Vifor Pharma — confirming media speculation that has been swirling for weeks.

After commenting on a "possible transaction" yesterday, Vifor announced the deal today: the company has entered into a definitive agreement to be acquired by CSL for an aggregate equity value of $11.7 billion.

CSL, Australia's fourth-largest company, is looking to generate growth by diversifying beyond blood plasma products. The deal will mark CSL's biggest acquisition and give it access to Vifor's treatments for iron deficiency, kidney and cardio-renal diseases, as well as its manufacturing sites in Switzerland and Portugal.

Back in 2015, shortly after buying Novartis’ influenza business, CSL publicly warned of a “biotech bubble” and hasty acquisitions amid a frenzy of mergers and acquisition activity across the healthcare sector. But according to CSL, the transaction, which has been unanimously approved by both companies’ Boards of Directors, "further advances CSL’s 2030 strategy to create value by adding a high- growth, cash generative and sustainable business which complements and expands the global leadership positions of CSL’s two business units, CSL Behring and Seqirus."

The tender is currently expected to commence mid-January, and the transaction is expected to be completed by mid-year.