Novartis to buy majority stake in Alcon for $28 billion

Drug maker Novartis made a bid to become a leading player in the growing global market for eye-care products Monday with an announcement that it plans to take control of Alcon Inc. by paying $28 billion for a total 77% stake in the company.

Novartis will pay cash for Nestle’s 52% stake before a merger with Alcon of Hunenberg, Switzerland, that would give it control of the remaining 23% held by shareholders.

The Basel, Switzerland, drug maker had already purchased 25% of Alcon from Nestle in April 2008 for $11 billion, with the option of buying the food and drinks company’s remaining stake at a later date.

Novartis will finance the deal using a combination of cash reserves, loans and by issuing new shares in its own stock -- a move that will require approval at an extraordinary shareholders meeting.

Novartis said Alcon’s portfolio of artificial lens implants, specialty medicines for glaucoma, infections and allergies, as well as over-the-counter eye products would help it create a separate eye-care division.