The two-step global merger, possibly one of corporate Europe's worst kept secrets, will see the formation of a $20-billion life sciences entity, Aventis, second only to Swiss major Novartis. Novartis closed 1997 with sales of $21.5 billion.

In India, the proposed merger will essentially involve two sets of wedding partners: Hoechst Marion Roussel India and Rhone-Poulenc India & Rhone Poulenc Rorer India; AgrEvo and Rhone Poulenc Agro. Analysts expect the German partner to call the shots in India given its sheer size compared with the French transnational. Both partners, however, intendto divest their chemical activities while Hoechst's animal health company, HR Vet, (with estimated sales of Rs 100 crore in India) will not form part of the new company.

Although there are no major areas of overlap on the pharmaceuticals front, the key strengths of both companies lie in different but possibly complementary segments. While Hoechst's brand basket comprises anti-histamines, anti-diabetics, anti-infectives and anti-rheumatics, Rhone-Poulenc's portfolio includes brands like Phensedyl (a cough syrup), Flagyl (an amoebicide), besides the Max India anti-cancer range.

"Rhone Poulenc's plans to introduce an anti-TB range would complement Hoechst's rifampicin-based Rifadin, Rifater, while Hoechst's Avil and Rhone Poulenc's Phenergan, both anti-histamines, will only boost the combine's presence in the anti-allergy segment," an analyst said. The combine will have a market share of 4.4 per cent.

Significantly, on the agrochemicals front, Hoechst Schering AgrEvo and Rhone Poulenc Agro already share asuccessful marketing relationship. Under the co-marketing deal, both partners are selling a fipronil-based rice insecticide under distinct brand names, Tempo and Regent.

Industry experts say that there are no major areas of overlap in terms of products and even if such a situation existed it could be taken care of by intelligent positioning. Major AgrEvo brands include Decis (essentially for cotton), Arelon (a wheat herbicide), Hostathion (for control of whitefly in cotton).

Meanwhile, the merger is expected to achieve global synergies of roughly $1.2 billion annually after three years and these are likely to be split approximately $700 million in pharma, $400 million in agro and $100 million in other functions.