Drugs and chemical firm Bayer will buy Swiss Roche's over-the-counter drugs unit for €2.38 billion in a move analysts say will improve profitability at the German group.
Bayer said in a statement today that the Roche deal would create a global consumer healthcare company ranking among the world's top three along with Johnson & Johnson and GlaxoSmithKline Plc.
It would bring under one roof Bayer's painkiller Aspirin and antacid Alka-Seltzer and Roche's Rennie digestive tablets.
Analysts said the acquisition made good strategic sense for Bayer even if it was a bit more costly than expected.
During the last month, analysts said a price of €2.2 billion to €2.3 billion would be ideal for Bayer.
The deal comes shortly after Bayer's decision to spin off to shareholders its Lanxess chemicals unit, representing a fifth of sales, and fuels the transformation of the 141-year-old chemicals giant often criticised as slow to change.
