Novartis, AstraZeneca announce spin-off, merger

The Boards of Novartis AG and AstraZeneca PLC announce that they each have unanimously agreed to spin off and merge Novartis Crop Protection and Seeds business and Zeneca Agrochemicals to create the world's first dedicated agribusiness company with combined sales in 1998 of $7.9 billion. The new company will be named Syngenta AG.

Novartis and AstraZeneca have entered into a binding agreement to create Syngenta. The transaction is conditional upon shareholder approvals of Novartis and AstraZeneca and receipt of relevant regulatory clearances. Completion is expected to take place in the second half of 2000.