Merck has signed an agreement to sell its global consumer health business to Procter & Gamble (P&G) for around euro 3.4 billion in cash, or around $4.2 billion at current exchange rates. The transaction, which is expected to close by the end of the fourth quarter 2018, is subject to regulatory approvals and satisfaction of certain other customary closing conditions.
Merck intends to use the net proceeds from the divestiture primarily to accelerate deleveraging. At the same time, it will allow Merck to increase flexibility to strengthen all three business sectors.
Merck is engaged in manufacturing and marketing of pharmaceuticals, bulk drugs, fine chemicals and pigments. The company operates through two segments - Pharmaceuticals and Chemicals.
