Procter & Gamble Company (P&G), a global consumer product manufacturing firm is all set to acquire a nearly 52% stake in drug firm Merck India for Rs 1,300 crore in a global deal taking over the international consumer health business of Germany’s Merck KGaA.
According to information that came in a public announcement on Thursday, Procter & Gamble Overseas India BV along with P&G will be making an obligatory offer to acquire 26% from public shareholders for up to Rs. 648 crore which will mark up the total cost of acquisition in India to Rs. 1,948 crore.
The procurement will allow P& G to expand its consumer healthcare business by incorporating a portfolio of physician-supported brands while complementing its owned brand like Metamucil, Pepto-Bismol, Crest and Oral-B and Vicks.
Within Indian context, Merck’s covers largest share of health business supplying minerals, vitamins, and supplements including products such as Polybion, Nuerobion, and Evion.
David Taylor, chief executive officer and chairman of P&G said,
We have been observing the broad-based growth of the OTC (over the counter) healthcare market for some time and therefore have decided to add the consumer health portfolio and people of Merck KGaA, Darmstadt, Germany, to the P&G family.
Merck CEO and executive board chairman Stefan Oschmann said,
The disinvestment of the Consumer Health business is an important step in Merck’s strategic focus on innovation-driven businesses within healthcare, life science, and performance materials. It is a clear demonstration of our continued commitment to actively shape our portfolio as a leading science and technology company.
After the transaction, about 3,300 employees will transition to P&G from global consumer health market.