Negotiations between Sanofi and Boehringer Ingelheim for an exchange of assets that would give the former the over-the-counter drug business of the German company while the latter would receive the veterinary sector of the French pharmaceutical giant.
The transaction is worth 22.8 billion euros and for Sanofi it would represent the largest transaction in the last 10 years. Sanofi's veterinary business is valued at 11.4 billion, Boehringer's assets at 6.7 billion. The Germans would pay 4.7 billion to fill the gap.
The deal would make Sanofi the world leader in consumer healthcare with a global market share of 4.6% and sales up to €5.1 billion in 2015 from €3.3 billion in 2014. Boehringer would become the second largest animal health company in the world.
The consumer medicines business of Boehringer Ingelheim China would not be part of the transaction, said the two companies, which aim to close the deal in the fourth quarter of 2016.
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