Merial will no longer be merged with fellow animal health company Intervet/Schering-Plough following a decision from the two firms' respective owners.
Merck Sharpe and Dohme and Sanofi-aventis have announced their decision to terminate the planned joint venture and will instead continue to operate their separate veterinary medicine divisions independently.
The merger deal was originally struck in March 2010 and was set to create a new company called Merial-Intervet, which would have been led by Intervet/Schering-Plough president Raul Kohan.
However, the companies have now decided that the increasing complexity of implementing this merger and the associated regulatory processes mean that ending the deal is the best option.
Both Merck Sharpe and Dohme - parent company of Intervet/Schering-Plough - and Merial owner Sanofi-aventis stated that they remain strongly committed to future growth in the animal health sector.
A joint statement said: "Merck and Sanofi-aventis mutually determined that ending their plan is in the best interests of both companies and their respective shareholders, as well as the employees of Merial and Intervet/Schering-Plough."See all the latest jobs in Animal Health