Roche looks to have finally gained control of the 44.2% stake in Genentech it did not already own but it has taken a $95 per share offer to clinch the deal.

The Swiss major had raised its hostile bid of $86.50 to $93 per share last week, which set off more discussions between the two firms. As a result of these talks, Genentech has decided that a $95 per share, valuing the stake at $46.8 million, is a good one.

Charles Sanders, chairman of the three-person special committee that Genentech set up to consider the various bids, said “we believe this is a fair offer” and “we look forward to working with Roche to complete the transaction as expeditiously as possible". The US biotechnology giant’s chief executive Arthur Levinson noted that “we have had a highly successful partnership with Roche for more than 18 years” and the firms will work together “to ensure a smooth transition once the transaction is complete".

Roche chairman Franz Humer said he was happy that the agreement is now friendly and no longer hostile, stating that “an agreed transaction offers clear and important advantages for the shareholders of both companies”. He added that the deal needs to be done quickly, “thus removing uncertainty for employees and allowing us to focus even more intently on innovation and long-term projects”. The expiry date for this offer is March 25.

Severin Schwan, Roche’s chief executive, said that “we are now in an enviable position to expand on the success of our longstanding relationship, which has been a source of immense value. He added that “we are excited about working with our colleagues at Genentech and look forward to partnering with them to develop a plan for the successful combination of the two companies”.

The deal should be accretive to earnings per share in the first year after closing, Roche said, and the combined group will become the seventh largest US pharmaceuticals company by market share. It will generate approximately $17 billion in annual revenues and will employ around 17,500 employees, including a combined sales force of 3,000.

Roche added that the combination should generate annual pretax cost synergies of $750- $850 million. This will be achieved by “reducing complexity and eliminating duplicative functions and processes” in areas like late-stage development, manufacturing and corporate administration.