Bayer to Lay Out $14.2 Billion for Merck's Consumer Care Business


WATCH: More market update videos on TheStreet TV | More videos from Brittany Umar

NEW YORK (TheStreet) -- German drugmaker Bayer said it would buy Merck's consumer care business, including brands like Claritin and Coppertone, for $14.2 billion.

VIDEO TRANSCRIPT:

German drugmaker Bayer said it would buy Merck's (MRK) consumer care business for $14.2 billion.

The deal is set to make Bayer the second-biggest over-the-counter drug-maker behind Johnson & Johnson (JNJ).  According to the company, it should add $2.2 billion in annual sales to its non-prescription business.

Merck said it expects after-tax proceeds of between $8 billion and $9 billion from the deal.  It said it plans to use the proceeds to develop products that have the highest potential growth opportunities. The deal is expected to close in the second half of 2014.

It is the latest in a string of M&A activity within the drug space.  Last month, Novartis (NVS), GlaxoSmithKline (GSK) and Eli Lilly (LLY) announced a $28.5 billion deal while Pfizer (PFE) has been seeking a $106 billion takeover of AstraZeneca (AZN).

At last check, shares of Merck were falling about 1.7% to $57.64.

In New York, I'm Brittany Umar for TheStreet.

-- Written by Brittany Umar in New York.

More from Stocks

Has Wall Street Completely Lost Its Mind on General Electric?

Has Wall Street Completely Lost Its Mind on General Electric?

Stocks Search for Direction as Trump Comments Lead to Worries Over China Talks

Stocks Search for Direction as Trump Comments Lead to Worries Over China Talks

Did Trump Just Torpedo the Stock Market Again?

Did Trump Just Torpedo the Stock Market Again?

10 Questions for PayPal Ahead of Its Big Investor Day

10 Questions for PayPal Ahead of Its Big Investor Day

Lowe's Taps Home Depot Veteran As New CEO

Lowe's Taps Home Depot Veteran As New CEO