Bayer to take over Schering

has announced it intends to make a public takeover offer to the stockholders of

in a deal with a total value of €16.3 billion.  The company has offered €86 in cash for each Schering share or ADS (American Depositary Share).

The boards of both companies have approved the deal.

“The proposed takeover of Schering is in line with our strategic objective to further grow our health care business, especially in the area of pharmaceutical specialty products, thus substantially strengthening our Bayer HealthCare subgroup in its role as a primary growth engine for the Bayer Group,” said Bayer Management Board Chairman Werner Wenning.

The companies plan to merge Berlin-based Schering and Bayer’s existing Pharmaceuticals Division to create an independent division of Bayer HealthCare named Bayer-Schering Pharmaceuticals. The merged pharmaceuticals business is to be based at Schering’s present headquarters in Berlin.

Bayer said that Bayer-Schering Pharmaceuticals will assume a leading role in the biotechnology field by combining their biotech platforms. The companies’ biotech products generate sales of approximately €2 billion. They also intend to merge their R&D activities.