GENEVA -- Serono SA said Friday that Germany's Merck KGaA has completed its share-purchase agreement with the Bertarelli family to take control of the Swiss pharmaceutical company.

That moves Merck closer to completion of its 10.6 billion euro ($13.9 billion) takeover, which is aimed at expanding its range of drugs and share of the global biotechnology market.

Merck now holds 84 percent of the capital and 89 percent of the voting rights in Serono, the company said.

The company, which has been trying to revamp itself over the past year, confirmed Friday that it was evaluating the possible divestiture of its Generics division, but said it had yet to enter into initial discussions with any potential buyers.

The German company bought 66 percent of Serono's capital and 76 percent of the voting rights from the family, a statement said. Merck bought the remaining shares on the market.

Subject to clearance by the Swiss Takeover Board, Merck plans on Tuesday to offer the remaining shareholders the same 1,100 Swiss francs ($896) a share it paid the Bertarelli family under an agreement announced last September, Serono said.

Last month EU regulators gave their approval to the takeover, which Merck pursued after losing a bid to acquire Schering AG.

Merck shares closed up 0.6 percent at 86.51 euros ($113.63) on the Frankfurt exchange Friday.

The announcement of the completion of the Bertarelli purchase came a day after Merck's shares soared amid talk that it was trying to sell its generic drug-making division.

"In light of the far-reaching changes occurring in the market, we are considering as an option the divestiture of Merck Generics to a qualified buyer," said Dr. Michael Roemer, chairman of the Merck Executive Board.

Selling the unit would help lower the company's debt following the Serono acquisition.

The generics unit accounted for 456 million euros ($600) of Merck's third-quarter sales of 1.54 billion euros ($2 billion).

The company said that whatever happens with the generics unit, it still planned to make a capital increase of up to 2.5 billion euros ($3.25 billion) within the first quarter of 2007.

Merck, founded as a pharmacy in 1668, is the oldest pharmaceutical business in the world. It has been entirely separate from New Jersey-based Merck & Co. since the end of World War I and employs some 29,000 people.

Serono has more than 4,750 employees and had worldwide revenues of 2.6 billion in 2005.

Associated Press writer Stephen Graham in Berlin contributed to this report.

On the Net:

www.merck.de

www.serano.com