At its board meeting held today, diversified engineering group Siemens Ltd approved the merger of Siemens Healthcare Diagnostics Ltd. with itself, with the 'appointed date' being 1 October 2009, subject to regulatory approvals.
Siemens AG's wholly owned subsidiary, Siemens Diagnostic Holding II B V, Netherlands, holds 68.73 per cent equity stake in SHDL.
The board approved the share swap ratio determined by Deloitte's Indian arm and ICICI Securities, of two Rs2 shares of Siemens Ltd. for every one share Rs10 of Siemens Healthcare Diagnostics Limited.
Dr. Armin Bruck, managing director, Siemens Ltd, said, "With this merger, we will be able to strengthen our healthcare portfolio and make Siemens one of the leading integrated healthcare companies to provide in-vitro and in-vivo diagnostic solutions in the Indian market. The complimentary portfolios of the two companies will raise synergies in leveraging a combined customer base and thus expanding the installed base in India."
Siemens Healthcare Diagnostics focuses on immunodiagnostics and the clinical chemistry business, with a significant presence in critical care, haematology, microbiology and plasma protein.
Siemens Ltd. in which Siemens AG holds 55.18 per cent, is the flagship listed company of Siemens AG in India.
Siemens in India, which comprises 19 entities and as many manufacturing plants, has a business volume aggregating about Rs12,000 crore from its operations in industry, energy and healthcare.