Procter & Gamble completes game-changing acquisition of Merck’s consumer health unit

In a significant boost to its consumer health portfolio, Procter & Gamble (P&G) has concluded its €3.4 billion acquisition of German pharmaceutical giant Merck’s consumer health business. This move, first announced in April 2018, aims to elevate P&G’s position in the global over-the-counter (OTC) health market, adding extensive geographical scale and expanding its presence across leading health categories.

Expanded Global Reach and Product Range

P&G confirmed that the acquisition extends its OTC market reach in nearly all top 15 global markets, enhancing its brand portfolio and increasing its footprint across pivotal regions such as Europe, Latin America, and Asia. The newly added brands cover a range of OTC products, addressing common ailments like muscle, joint, and back pain, as well as cold and headache relief. The acquisition also includes solutions to support physical activity and mobility, effectively diversifying P&G’s offerings in health care.

Enhanced Leadership and Health Care Expertise

In a strategic addition to the team, former Merck Consumer Health President and CEO, Uta Kemmerich-Keil, will now lead P&G Personal Healthcare International. This newly combined division brings together P&G’s expanded OTC business across multiple regions, with Kemmerich-Keil poised to steer P&G’s international consumer health strategies.

P&G has emphasized that this acquisition brings substantial commercial, supply chain, and technical capabilities that will fortify its position in the consumer health market. Tom Finn, President of P&G Global Personal Health Care, expressed optimism, noting that the merger initiates a new chapter aimed at unlocking growth potential and expanding their footprint in the rapidly growing consumer health sector.

Merck’s Strategic Shift

Merck KGaA, based in Darmstadt, Germany, has strategically exited the consumer health space with this transaction to streamline its focus on healthcare, life sciences, and performance materials. Merck’s Executive Board Member and Healthcare CEO, Belén Garijo, expressed confidence in P&G’s ability to drive further growth in the health and well-being sector, indicating that this sale aligns with Merck’s broader vision to center its business on scientific advancements and technology.

A New Era in Consumer Health Care

As the global consumer health landscape continues to expand, the P&G-Merck merger exemplifies the shift toward strategic acquisitions to capture larger market shares. This acquisition sets the stage for P&G to deepen its influence in high-demand health categories while leveraging Merck’s established brands and regional expertise to enhance its competitive edge.