Sanofi and Boehringer are in negotiations for a transaction to swap business units, making Sanofi one of the world's largest manufacturers of over-the-counter medicines and Boehringer the second-largest animal health company, according to a company statement and multiple news outlets.
Sanofi would receive 4.7 billion euros, or about $5.2 billion in cash for giving their animal health business to Boehringer, as well as get Boehringer’s consumer healthcare business, excluding its operations in China, under the agreement.
Germany would become a key center of Sanofi consumer healthcare business, including gastro-intestinal and cough & cold categories. Boehringer will commit to maintain business operations, R&D and manufacturing centers in France.
"Our combined Animal Health business would be well positioned for growth and emergence as a leader globally," said Andreas Barner, Chairman of the Board, Boehringer.
Their goal is to close the potential transaction in the fourth quarter of 2016, subject to appropriate regulatory approvals.