PT Merck, a subsidiary of German pharmaceutical company Merck KGaA, will complete the divestment process of its consumer health business in the fourth quarter of this year.
On Monday, Merck corporate secretary Melisa Sandrianti said the divestment was part of Merck KGaA’s plan to sell its global consumer health business to United States company Procter & Gamble (P&G).
“The value of the transaction in Indonesia is Rp 1.38 trillion (US$97.98 million). It will be executed by PT Procter & Gamble Home Products Indonesia along with other P&G subsidiaries here,” she said after the shareholders meeting in Jakarta.
Meanwhile, Merck consumer health business director Holger Guenzel said the production plant was not included in the transaction.
“[However], around 180 employees will be transferred to P&G,” he said, adding that Merck would control the consumer health business until the transaction was completed.
Merck over-the-counter (OTC) medicines such as the B-complex vitamin, Neurobion, and anemia medication Sangobion are well known in the market. The consumer health business is a cash cow for the company, contributing 48 percent to corporate sales last year.
Last year, Merck’s net sales increased by 12.33 percent year-on-year (yoy) to Rp 1.16 trillion while consumer health business sales increased by 6.9 percent yoy to Rp 558 billion.
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