Under the terms of the agreement, Bayer will pay an immediate $60 million to assume control of the animal health business, Bloomberg noted. An additional $85 million will be paid as the German conglomerate realizes specified sales and production goals from the business.
Shares of Teva Pharmaceuticals rose fractionally in Friday morning trading, while Bayer’s shares slipped slightly in over-the-counter trading in New York.
The deal still needs approval from U.S. regulators. Assuming it receives the green light, it’s expected to be finalized in 2013.
The purchase will allow Bayer to expand animal food business in the U.S.
In June, CVS Caremark (NYSE:CVS) and Rite Aid (NYSE:RAD) sued Teva Pharmaceutical and Pfizer (NYSE:PFE) claiming that the pharmaceutical companies had conspired to prevent generic versions of Effexor XR, an antidepressant, from reaching retail stores.