In one swift and decisive move, Bayer has swooped in with a $20 billion offer to buy Schering, knocking rival Merck KGaA out of the bidding and gaining support from Schering's board. The surprise move may well herald a much more aggressive pharma scene in Germany. Bayer's drug business has stumbled badly in recent years with the recall of the anti-cholesterol therapy Baycol in 2001 and a failed effort to find a partner for its drug business. Bayer's drug business now accounts for less than half of its revenue. If the deal is completed, Bayer will pick up Schering's oral contraceptives and cancer therapies. Executives anticipate trimming 6,000 jobs in the wake of a merger.
- here's the report from the Sydney Morning Herald
PLUS: Merck KGaA swiftly surrendered to the higher bid. Report