Bayer HealthCare to purchase Merck’s consumer care division

Bayer HealthCare has announced that it will be purchasing the consumer care division of Merck Sharp and Dohme in a deal worth $14.2 billion (8.37 billion pounds).

The acquired business is among the world's largest suppliers of over-the-counter products, with a number of leading offerings in the cold, allergy, sinus and flu, dermatology, foot health and gastrointestinal categories, including brands such as Claritin, Coppertone and Dr Scholl's.

Upon completion of the takeover, Bayer HealthCare expects to achieve global leadership positions in dermatology and gastrointestinals, while taking second place in the cold, allergy, sinus and flu categories. It will also greatly strengthen its market presence in North and South America.

The firm also announced a separate global co-development and co-commercialisation agreement with Merck Sharp and Dohme in the field of soluble guanylate cyclase. It will see Bayer receive an upfront payment of $1 billion.

Bayer chief executive officer Dr Marijn Dekkers said: "This acquisition marks a major milestone on our path towards global leadership in the attractive non-prescription medicines business."

During the first quarter of the year, Bayer's consumer health division generated sales of 1.79 billion euros (1.47 billion pounds).