Analytical instrument firm Thermo Electron and chemical manufacturer Fisher Scientific have agreed a merger deal, aiming to become 'the leading provider of laboratory products and services in the high-growth life, laboratory and health sciences industry'.

Thermo, the smaller of the two US companies, will acquire Fisher for $10.6 billion (£5.7 billion). Fisher shareholders will get two Thermo shares for each Fisher share they own. The final split of stock will be 61 per cent held by Fisher shareholders and 39 per cent held by Thermo shareholders.

The new company, Thermo Fisher Scientific will hope to make savings of up to $200 million in 'synergies'. These are expected to come from 'manufacturing rationalisation, sourcing and logistics efficiencies, and shared administrative functions' as well as breaking into new markets. 

Thermo's president and chief executive officer Marijn Dekkers, will become president and chief executive officer of the combined company. Paul Montrone, Fisher's chairman and CEO, will leave the company, retaining an advisory role. 'This combination brings together two well-respected industry leaders in the life, laboratory and health sciences marketplace to create a company that has the product breadth, global reach and operational expertise to drive significant value for shareholders, customers and employees,' said Dekkers.

The combined company will have 30 000 employees, annual revenues of around $9 billion and an international sales force of 7500.

Katharine Sanderson