An announcement was made by the German pharmaceutical and chemical group Bayer on Tuesday that it will be selling its Animal Health business unit to Elanco, which is a United States-based drug company for 7.6 billion dollars for creating an industry giant.
The firm said in a statement that the sale was done in order to reinforce the focus of the firm on life science and the sales are anticipated to be completed in the mid of next year awaiting anti-trust clearance.
Animal Health Business of Bayer is a world leader in the segment with sales of worth 1.8 billion dollars in the previous year. The deal will be creating the number 2 in the sector.
Bayer told that the transaction will be comprising of 5.3 billion dollars in cash and 2.3 billion dollars in Elanco stock.
According to the agreement of the sale, it was vowed by Bayer that all of its employees in the Animal Health Business will at least have a whole year of employment protection against unilateral termination with similar, as well as, no less favorable benefits in the aggregate.
As the firm is struggling with the fading profits and revenues, Bayer is selling off numerous other divisions inclusive of a part of its over-the-counter medicines division, famous as Consumer Health.
The unit is inclusive of the household-name brands such as indigestion treatment Alka-Seltzer and painkiller Aspirin.
Previously this month Bayer, as well as, its former subsidiary Lanxess made an announcement of the sale of their chemicals company ‘Currenta’ to Macquarie Infrastructure and Real Assets in Australia for worth 3.5 billion Euros which is equivalent to 3.9 billion dollars.
After taking the acquisition of the seeds and pesticides giant of the United States ‘Monsanto’ for worth 63 billion dollars in the previous year, the Leverkusen-based group is now reorganizing itself around its main businesses.