Bayer on the verge of Schering buyout

BAYER look set to win the bid for drugmaker Schering, at €16.3 billion, after rival Merck pulled out of the race for top spot in Germany’s drugs industry.

Merck, whose €77-a-share offer for Schering was trumped late last week by Bayer's white-knight bid of €86, said it would walk away from the planned takeover because a higher price was not justified.

If Bayer's bid goes through, it will create a group with sales of around €15 billion, putting back on the map a German drugs industry that has lost its one-time status as chemist to the world.