Merck weighing acquisition of Cubist for more than US$7b: sources

New York

DRUGMAKER Merck & Co is in talks to acquire the biopharmaceuticals company Cubist for more than US$7 billion, according to people briefed on the matter.

The deal, if announced, would represent another multibillion-dollar health care transaction in a banner year for mergers and acquisitions in the industry.

It would also fit into the strategy by Merck's chief executive, Kenneth C Frazier, of buying successful midsize drugmakers that complement his company's existing stable of drugs.

Merck is expected to pay roughly US$100 a share for Cubist, valuing the company in the range of US$7.5 billion, these people said. A deal could be announced as early as this week. Merck and Cubist did not reply to requests for comment on…