Bayer is considering the sale of its radiology supplies business in a deal that could be worth more than $3 billion U.S. (2.7 billion euros), according to an article published on Friday by Reuters.
Citing sources "familiar with the matter," Reuters reported that Bayer is in talks about hiring a financial advisor to explore strategic alternatives, including a sale, for the radiology supplies unit. However, sources also told Reuters that Bayer may still elect to hold on to the business. Featuring the firm's Ultravist CT and Gadovist MR contrast agents, the unit generates more than $1.7 billion U.S. (1.5 billion euros) in annual revenue from contrast agents and related injection systems, according to Reuters.
The internal discussions are taking place in the backdrop of a recent bid by Bayer to purchase agrochemical firm Monsanto. While Bayer is still attempting to buy Monsanto, the potential acquisition appears to be stalled after Bayer's initial $62 billion U.S. (54.9 billion euros) bid was rejected by Monsanto. Bayer has since said it will not increase the offer until Monsanto provides access to its books, while Monsanto is apparently holding out for a higher price before sharing confidential information with Bayer, according to the article.
While Bayer has indicated that it does not need to sell off assets to finance its Monsanto bid, it also said that strategic reviews of its businesses would continue as usual, according to Reuters.
