The deal will have St. Jude Medical shareholders receiving $46.75 in cash and 0.8708 shares of ABT stock for each STJ share they own. This has the deal valued at $85 per share based on ABT shares being $43.93.
Abbott Labs said that it expects the deal to be accretive to its earnings per share starting in the first full year after the transaction is completed. It will take over St. Jude Medical’s $5.7 billion in debt and will cover the cash parts of it with medium- and long-term debt.
Abbott Labs has already received approval from both companies’ Board of Directors and is now waiting for approval from regulators and STJ shareholders. It expects the deal to close during the fourth quarter of 2016.
ABT shares were down 5% and STJ shares were up 27% as of Noon Thursday.
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