Talks between Hikma and GlaxoSmithKline fail to secure a deal

(Sharecast News) - Talks between Hikma Pharmaceutical and drugs giant GlaxoSmithKline have ended, the generics group confirmed on Thursday.
Hikma was in discussions to acquire GSK's pharmaceutical and consumer businesses in Egypt along with its pharmaceutical business in Tunisia. The blue chip entered into a non-binding term sheet with GSK in January, but on Thursday it said that the talks had now finished.

In a brief statement, Hikma said: "Both companies have agreed to cease discussions regarding the proposed transaction and, accordingly, Hikma will not be launching a mandatory tender offer process to acquire the shares in GlaxoSmithKline SAE Egypt."

No reason was given for the ending of the talks. However, when it first confirmed the discussions, Hikma said further talks would depend on the result of its due diligence process. It also confirmed any potential transaction would be subject to a number of conditions and there was no guarantee a deal would be struck.

UK-headquartered Hikma, which was founded in Jordon by Samih Darwazah in 1978, is one of the world's biggest generics groups. It floated in 2005 but the Darwazah family remain its biggest shareholder with a 26% stake.

As at 1415 GMT, shares in Hikma were down 1% at 2,246.0p, while GSK was also trading 1% lower, at 1,252.0p.

No financial terms were associated with the potential transaction.