Germany's Merck KGaA has executed a binding contract to divest its shareholding in Pakistan to Martin Dow Ltd, a leading pharmaceutical company in Pakistan. The companies also agreed on long-term agreements whereby the business in Pakistan will have access to Merck healthcare and life science portfolios, ensuring continued supply of its products to its patients and customers.
According to an announcement of the company (Merck) here on Monday, "we are convinced that Martin Dow will be a great partner who will ensure sustainable long-term growth of the Pakistan business," Simon Sturge, chief operating officer of Merck's healthcare business said. He added that the divestiture was due to strategic reasons.
The Marker family, the founder of the business, will remain a shareholder along with Martin Dow and together, they will uphold the values and ethics that have been the hallmark for Merck's valued employees, patients and other stakeholders. Under the new owners, Merck Pakistan will continue to operate as a separate legal entity, with the same employees. No operations will be shutdown and there will be no job termination as a result of this transaction, as Martin Dow is committed to continuing and growing the existing business. Martin Dow has also agreed on a two-year job guarantee for all permanent and contract employees. In addition, Merck will pay its employees a welcome bonus at closing.
"We intend to build Merck's outstanding record in Pakistan further and protect employees rights in the same manner as has been prevalent all these years in Merck," Jawed Akhai, Chairman of Martin Dow said. "I am sure all employees and other stakeholders will take pride in the fact that they will now be an integral part of the country's fastest growing pharmaceutical group." The companies agreed to not disclose the financial terms of the deal, press release added.-PR
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