Bayer and Schering Healthcare set for government talks

The German government is said to be planning to hold talks with representatives of the pharmaceutical companies Bayer and Schering Healthcare.

Schering Healthcare was last week the subject of an ?11 billion bid from its larger rival, which has since received the backing of its board.

According to reports this morning, the German government is keen to speak to both companies about the potential impact on jobs and facilities.

“The government will in due course talk to both companies regarding these issues,” a spokesman for the German government told the AFX News Agency.

The Bayer bid has been recommended to Schering Healthcare shareholders. If it is accepted and the deal goes through the new business would be called Bayer Schering Pharma and headquartered in Berlin.

The Bayer offer values Schering Healthcare at 16.3 billion euros (?11.2 billion).

Bayer’s rival Merck also tabled a bid for Schering Healthcare but its approach was rejected by the board.

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