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The case gives a detailed account of the events that led to the merger of two of France''s leading pharmaceutical companies, Aventis and Sanofi, to form the largest pharma company in the world. It examines the efforts made by Aventis to prevent a hostile takeover attempt by Sanofi. The case also details the role played by the French government to prevent a possible merger between Swiss-based pharmaceutical company Novartis and Aventis. The case focuses on the issue of whether governments should proactively involve themselves in the business matters of private companies. The case is structured to encourage students to: (1) study the various defensive strategies adopted by companies to prevent a hostile takeover bid; (2) discuss the role that should be played by the government in business matters of private corporations; (3) analyse the merger of Aventis and Sanofi and discuss the synergies that can be leveraged by the merged entity; (4) analyse the benefits to Aventis in case its merger plans with Novartis had been approved; and (5) analyse the reasons for a major consolidation phase in the European pharmaceutical industry. The case is aimed at MBA/PGDBA students as part of the strategy and general management curriculum. The case can also be discussed as part of the politics and business environment curriculum. The teaching note does not contain an analysis of the case.