The boards of Pfizer India and Wyeth India have approved a merger with a swap ratio of seven shares of the former for every 10 shares of the latter.
They have also announced an interim dividend of Rs 360 and Rs 145 a share, respectively.
Based on the proposed swap ratio, Pfizer India will issue 15.9 million new equity shares to Wyeth India's shareholders.
Following the announcement of a meeting between the boards of the companies on Wednesday, shares of both companies had gone up. While Wyeth was locked in an upper circuit after the stock gained 20 per cent at Rs 776, Pfizer hit a 52-week high on the BSE exchange. On Friday, Wyeth's shares closed at Rs 814.15 on BSE, up 2.11 per cent, while Pfizer's closed at Rs 1,431.55, down 0.01 per cent.
In 2009, US-based Pfizer had bought Wyeth for $68 billion. Aijaz Tobaccowalla, managing director, Pfizer India and Wyeth India, said "I strongly believe that this merger will increase long-term value for all stakeholders. The combined entity would have an increased therapeutic presence and a de-risked business profile."