Merck announced that it has signed an agreement to sell its global Consumer Health business to Procter & Gamble (P&G) for approximately € 3.4 billion in cash, or approximately $ 4.2 billion at current exchange rates. The transaction  is expected to close by the end of the fourth quarter 2018. It is subject to regulatory approvals and satisfaction of certain other customary closing conditions.

The transaction will be executed through the sale of Merck’s shares in a number of legal entities as well as various asset sales and comprises the Consumer Health business across 44 countries, including more than 900 products and two Consumer Health-managed production sites in Spittal, Austria, and Goa, India. As part of the transaction, approximately 3,300 employees, mainly from Consumer Health, might transition to P&G upon completion of the transaction, subject to prior works council consultation where required.

The sale of the global Consumer Health business does not yet comprise the French Consumer Health business. Here P&G has made a binding offer to acquire the shares and assets upon Merck having informed and consulted with the relevant works council representatives. For the Indian business, it has been agreed that P&G will acquire Merck’s majority shareholding in Merck Ltd., India, a publicly traded company, and subsequently make a mandatory tender offer to minority shareholders. As part of the transaction, Merck and P&G have agreed on a number of manufacturing, supply and service agreements.

• Merck KGaA, Darmstadt, Germany