Bayer would consider 'merger of equals' for its health care unit, CEO tells Bloomberg

Although German drugs and crop sciences major Bayer AG (BAY: DE) is fine with doing nothing, a “merger of equals” could be contemplated for its health care business, the firm’s recently-appointed chief executive Marijn Dekkers told the Bloomberg news service in an interview this week.

Doubling the size of Bayer’s health care unit, which had 16.9 billion euros ($25.1 billion) in sales last year, would create a drugmaker on par with France’s Sanofi-Aventis and UK-based GlaxoSmithKline and AstraZeneca, noted Bloomberg. Bayer is relying on its two chemical units to drive growth this year, forecasting that revenue gains at the drug division will not match the market. Being bigger is not essential, though it may be advantageous, said Mr Dekkers, who took over as CEO last October.

Bayer would consider such a merger “if the stars were to be aligned,” Mr Dekkers said during the interview, adding: “I would be open to making the company stronger if the right opportunity were to come,” which would not mean paying a premium for a large acquisition.