"The agreement between the P & G and German Merck is expected to close by the last quarter of 2018", as said by the Merck. Its top brands include Neurobion, Dolo-Neurobion, Femibion, Nasivin, Bion3, Seven Seas and Kytta, along with many others, and these are sold primarily in Europe, Latin America and Asia. "The attractive price reflects the high asset value and the performance Consumer Health has delivered", said Stefan Oschmann, chairman of the executive board and CEO of Merck KGaA, in a company press release. It also provides P&G with strong health care commercial and supply capabilities, deep technical mastery and proven consumer health care leadership that will complement P&G's existing consumer Health Care capabilities and brands such as Vicks, Metamucil, Pepto-Bismol, Crest and Oral-B.
In September 2017 Merck had said that it was preparing strategic options for its consumer health business, including a potential full or partial sale of the business as well as strategic partnerships.
"With P&G we have found a strong, highly recognised player who has the necessary scale to successfully drive the business going forward", he said. As such, the acquisition will help P&G improve its over the counter (OTC) geographic scale, category footprint and brand portfolio.
Merck, based in Darmstadt, Germany, said it would use the money from the sale to reduce debt. The company exceeded analyst expectations on net sales and profit growth, but fell short of expectations on organic sales growth. Merck put the the unit up for sale a year ago as it pumps money into testing new drugs such as the cancer medicine Bavencio.
Shares of Merck zoomed almost 19 per cent on Thursday after Procter & Gamble announced it will acquire a 51.80 per cent stake in the company for Rs 1,289.88 crore as part of a global deal under which it is taking over German firm Merck KGaA's worldwide consumer health business.
About 3,300 Merck employees, mainly from the consumer health unit, could move to P&G upon completion of the transaction.
FMCG giant Procter & Gamble (P&G) has made a mandatory open offer to acquire a 26 per cent stake in Merck's Indian-listed company as a part of its buyout of the German firm's consumer healthcare business globally.