Sanofi and Merck will continue in their partnership to create a new leader in the global animal health market.

Paris-based pharmaceutical company Sanofi-Aventis, has bought Merck’s 50% interest in animal health venture, Merial, for a reported $4 billion (£2.4bn).

The deal means Sanofi will own 100% of Merial – a leading animal health company – which was formed by Sanofi and Merck in 1997 as a joint venture.

In a statement released by the company it said it had based the acquisition price on three times Merial’s 2008 sales and ten times its earnings before interest and taxes.

Christopher A. Viehbacher, CEO of Sanofi-Aventis, commented: “We are pleased with the acquisition of Merial, a major global player in animal health.”

Sanofi and Merck will continue a partnership through a shared interest in global health company, Schering-Plough, which they hope through a merger, will create a new leader in the global animal health market – worth an estimated $19bn.

Richard T.Clark, Merck Chairman was also delighted with the outcome of the sale: “We are pleased that our long-term partner Sanofi-Aventis will purchase Merck’s interest in Merial, the successful joint venture we built together.  

“We look forward to the potential opportunity to bring together the strong animal health businesses of Sanofi-Aventis and the new Merck.”

This week, Sanofi announced its Q2 results with an increase in net income of 29.4%, citing strong growth in vaccine and drug sales.

On the Paris Stock Exchange, both Sanofi and Merck suffered slight dips, before the latter made a slight recovery at the start of today’s (31 July) trading.