Hoechst and Rhone Close to Merger

Germany’s biggest drug maker, Hoechst, and France’s Rhone Poulenc are close to agreeing a merger, German newspaper Handelsblatt will report in its Monday editions. The newspaper, citing sources close to the negotiations, said the companies are currently working on the “fine tuning” of the deal. A source is quoted as saying the deal will be “a merger of equals” to be announced in December. Rumors that the two pharmaceutical companies would merge to form the world’s second-biggest drug company have swept stock markets for weeks. The newspaper added that the new group’s market capitalization would be about $48 million.