Bayer's Animal Health business is a global leader in the segment with sales of $1.8 billion last year. The deal will create the number two in the sector. The transaction will consist of $5.3 billion in cash and $2.3 billion in Elanco stock, Bayer said. It pledged that under the sale, "all Bayer Animal Health employees will have at least one year of employment protection against unilateral termination with similar and no less favourable benefits in the aggregate".
As it struggles with ebbing revenues and profits, Bayer is selling off several divisions including chunks of its over-the-counter medicines division, known as Consumer Health. The unit includes household-name brands like painkiller Aspirin and indigestion treatment Alka-Seltzer.