Bayer in talks to buy Merck's consumer business

Bayer is in exclusive talks to acquire Merck's consumer business and is prepared to pay about US$14 billion for the division, people with knowledge of the matter said.

An announcement was expected to come in the next few days, they said.

While the two sides have agreed to a deal in principle, they are still working out details and have not formally reached an agreement.

The terms would include cash and an exchange of pharmaceutical assets, possibly structured as a joint venture.

A deal would strengthen Merck's core drug business while helping Bayer to beef up its consumer products line by adding brands including Claritin allergy relief.

It would be similar to other recent pharmaceutical transactions, in which companies have sold weaker business lines and added to areas where they are more competitive.