German pharmaceuticals giant Bayer, maker of Aspirin, said on Thursday it had signed an agreement to buy the privately-owned Chinese group Dihon Pharmaceutical for an undisclosed sum.
Dihon specialises in prescription-free or over-the-counter (OTC) drugs and is one of China's leading groups in that segment, Bayer said in a statement.
It employs a workforce of 2,400 and generates annual sales of 123 million euros ($168 million).
Its products include the anti-dandruff treatment Kang Wang and Pi Kang Wang, a cream against skin fungus.
The deal must be approved by the cartel authorities. Bayer expects to complete it in the second half of this year.
"We want to strengthen our life-sciences portfolio via strategic acquisitions. With this deal, we will attain a leading position among the multi-nationals present in the Chinese OTC market," said chief executive Marijn Dekkers.
Dihon also sells its products in Nigeria, Vietnam, Myanmar and Cambodia and is headquartered in Kunming in south west China.
hollywoodtone.blogspot.com Bayer says will buy Chinese over-the-counter drugs maker