HUENENBERG, Switzerland—Novartis (NYSE: NVS) has exercised its option to purchase the remaining shares in Alcon (NYSE: ACL) owned by Nestle for $180 per share, or about $28.1 billion. Novartis had originally purchased about 25 percent of Alcon, based here, for roughly $10.4 billion under an agreement signed in April 2008.

Novartis also submitted a proposal to Alcon’s board of directors to acquire the remaining 23 percent of that company’s stock (owned by other shareholders than Nestle), at which point Alcon would merge into Novartis. Under that deal, Alcon shareholders would receive 2.8 Novartis shares for each Alcon share, at a value of about $153 per Alcon share, or roughly $11.3 billion, bringing the total value of Novartis’ purchase of Alcon to about $49.8 billion.

That proposed merger would be conditioned on approval by Alcon’s board, the closing of the stock sale between Novartis and Nestle (expected to come in this year’s second half), and required regulatory approvals, according to Novartis.

Following its announcement of the stock purchase, Daniel Vasella, Novartis’ president and CEO sent a letter to company associates related to the deal, explaining how the Alcon acquistion will strengthen Novartis’ growing healthcare portfolio by providing greater access to the “dynamic expansion of the global eyecare segment.”

Another letter dated Jan. 4 to associates from George Gunn, CEO of Novartis’ Consumer Health Unit, provided more detail about how CIBA Vision is envisioned to contribute to future growth.

Gunn’s communication stated, “As the fastest growing contact lens company in 2009, CIBA Vision will continue to be a valuable contributor to the overall Novartis position in eyecare. This is a business with a bright future, and our CIBA Vision colleagues can be excited by the prospects that a broader and stronger position in the global eyecare sector brings with it. Once full ownership of Alcon is achieved, Novartis plans to integrate CIBA Vision into Alcon.”

Gunn noted, as indicated in previous communications, “Kevin Buehler will continue to lead Alcon, and upon completion of the merger would become head of the new division. Andrea Saia will remain as head of our CIBA Vision contact lens business unit. At the appropriate time, we will establish an integration leadership team together with Alcon.

“We will do the utmost to reduce the time of uncertainty for all associates to a minimum by taking decisions as quickly as possible on people and sites.The creation of a new eyecare division including CIBA Vision is an exciting prospect, but one that will take time.”■