PARIS AP Two of Europe's largest drug makers Hoechst of Germany and Rhone-Poulenc of France announced Tuesday they are merging their pharmaceutical and agrochemical operations. The new company will be called Aventis said a statement released by the two companies. It is to be based in Strasbourg eastern France where a press conference was to be held later Tuesday. The agreement ``launches the procedure for the first phase of a two-step plan which will eventually lead to a full merger of Hoechst and Rhone Poulenc'' the statement said. ``We want to create a new company with European roots and global reach to take full advantage of the extensive opportunities of life sciences in the 21st century'' said the two chairmen Jean-Rene Fourtu of Rhone Poulenc and Jurgen Dormann of Hoechst. It was ``anticipated'' that Dormann would be the new chairman of Aventis and Fourtu the vice chairman the statement said. Analysts have warned against a full merger until the heavily indebted firms reduce costs. With annual sales of around dlrs 20 billion the new company will be tied for the No. 1 ranking with Switzerland's Novartis in the life-sciences sector. Unions in France and Germany have been critical of the merger fearing layoffs. Hoechst employs 118000 workers and Rhone-Poulenc 68000. jn APW19981201.0845.txt.body.html APW19981201.0633.txt.body.html