Bayer to Acquire Merck’s Consumer Business Unit for $14.2 Billion

Bill David Brooks

Bayer to Acquire Merck’s Consumer Business Unit for $14.2 Billion (Bloomberg)

Bayer AG’s (BAYN) deal to purchase Merck & Co’s consumer products unit for $14.2 billion will be the second-largest acquisition in the Germany-based company’s history. And it follows the Novartis/GlaxoSmithKline whopper of a deal in Big Pharma announced just weeks ago. Even though Bayer’s paying more than 20 times earnings for Merck’s business, and many feel that’s too much, others like the deal, including Ulrich Huwald of Warburg Research: “Strategically, this is a consistent step for Bayer. The have a very strong brand, a clearly positive position in the over-the-counter business.” However, investors appear to be lining up opposite Ulrich on the deal, as BAYN shares are down since the announcement. What do you think?

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Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.