French pharmaceutical company Sanofi-Aventis SA has finally agreed to acquire a controlling stake in Hyderabad based Shantha Biotech for 550 million euros.

Under the terms of the agreement, the French drugmaker's vaccine division, Sanofi Pasteur will buy Merieux Alliance's French subsidiary ShanH, which owns 80 percent stake of Hyderabad-based Shantha Biotechnics.

The acquisition of Shantha, which is expected to have sales of around $90 million in the current fiscal year, is expected to be completed by the end of the third quarter.

It should be noted that Glaxo was also in the race to acquire Shantha Biotech.