Hoechst and Rhone-Poulenc Create Life-Sciences Division, Prepare for Merger

Frankfurt, Germany-based Hoechst AG (HOE) and Strasbourg, France-based Rhone-Poulenc (RP) have announced the merger of their life-sciences activities into a new company, Aventis, which will combine the pharmaceutical and agricultural businesses of both groups. The move will eventually lead to a full merger of the two firms. Aventis will have a combined R&D budget of almost $3 billion and pro forma sales of $20 billion, with nearly 25% of that total coming from the U.S. Global headquarters will be in Strasbourg.