Billion-Dollar Merger-Mania Monday!

This morning, according to an article in the Financial Times, Wilmington, Massachusettes-based pharmaceutical developer Charles River Laboratories agreed to purchase Chinese rival WuXi PharmaTech  for $1.6billion allowing greater presence in the Chinese market.  The pharmaceutical industry has already seen massive job cuts due to mergers with the January announcement of Merck’s takeover by Schering-Plough.  Through March, over 26,000 job cuts have been announced by US-based pharmaceutical companies.  While job cuts may follow the integration of WuXi into Charles River, since the latter is increasing presence in a foreign market, we may see more management changes than layoffs of rank-in-file. Charles River is listed with 8,500 employees, while WuXi is reported to have just over 3,600.

Q1 Pharmaceutical Cuts:
   2010       2009
 26,165    48,665
Source: Challenger, Gray & Christmas, Inc.

Additionally, Hertz Rental based out of New Jersey has agreed to buy their Oklahoma-based rival Dollar Thrifty for $1.7billion in stock and cash, according to an AP article in the USA Today.  So far this year, over 20,000 job cuts have been announced due to mergers and acquisitions according to Challenger tracking.

Q1 Merger/Acquisition Cuts:
       2010      2009
     20,515   44,379
Source: Challenger, Gray & Christmas, Inc.

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