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. Last Updated: 07/27/2016

Biotech Giant Formed

LONDON -- Britain's Chiroscience Group PLC and Celltech PLC announced a surprise merger Tuesday to forge a $1 billion biotechnology giant, the biggest in Europe.

The transaction brings together over 400 scientists working on potential medicines to treat a range of diseases including asthma, cancer, osteoporosis and arthritis.

Under the deal, an effective takeover by Celltech, Chiroscience shareholders will be offered 62 new Celltech shares for every 100 shares held. The combined market capitalization of the group will be around pounds 700 million ($1.12 billion).