Overview:
- Merck, the world's oldest operating pharmaceutical company, has agreed to sell its consumer health division to Procter & Gamble for €3.4 billion.
- Headquartered in Germany, Merck employs 53,000 staff across the world and had sales last year of €25.3 billion. The company had first announced its intentions to sell the division in September 2017 and has since stated that it would use money from the sale to reduce debt and provide extra financial support for its key business areas such as healthcare, life sciences and performance materials.
- Procter & Gamble derived 12% of group sales, or $7.5 billion, from health care products last year, which includes Oral-B toothbrushes and the Vicks brand.
- Upon completion of the deal, the Cincinnati-based corporation aims to expand its portfolio of consumer healthcare products to include vitamin brands such as Seven Seas, as well as to gain greater exposure to Latin American and Asian markets.
- The transaction covers 44 jurisdictions and relates to more than 900 products, meaning it will require the approval of numerous regulatory authorities. The closing is expected during the fourth quarter of 2018.
Prin Shasiharan - Researcher