The world’s largest drugmaker, Pfizer, is poised to become even more gargantuan after it agreed early this morning to buy rival Wyeth for $68 billion, reports the Wall Street Journal. In the first major merger to hit Wall Street in months, Pfizer will borrow $22.5 billion from four banks that received bailout money—Goldman Sachs, JPMorgan, Citigroup, and Bank of America, reports the New York Times.
The deal would be the largest pharmaceutical merger since the $76 billion consolidation of GlaxoWellcome and SmithKline in 2000. Wyeth shareholders will get $50.19 per share: $33 in cash and just less than one share of Pfizer stock. After the deal, it’s anticipated Wyeth’s management team will be replaced, including CEO Bernard Poussot.