Martin Dow acquires Merck operations in Pakistan

KARACHI: Pharmaceutical firm Martin Dow Limited has acquired Pakistan’s operation of German Merck KgaA, said a statement issued by the Germany firm on Monday.

The statement said Merck “has executed a binding contract to divest its shareholding in Pakistan to Martin Dow Ltd., a leading pharmaceutical company.” 

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, it said.

The companies agreed to not disclose the financial terms of the deal. Simon Sturge, chief operating officer of Merck’s healthcare business said the divestiture was due to strategic reasons.

“We are convinced that Dow will be a great partner who will ensure sustainable long-term growth of the Pakistan business,” Sturge said.

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.

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.