Bayer has agreed to pay $14.2 billion to buy rival Merck’s consumer care business.

The German pharmaceutical company said buying the division, which makes Coppertone sun care products, Dr. Scholl’s foot health and allergy brand Claritin, was “a major milestone”.

Bayer said Merck would separately pay it $1 billion in a co-development deal over heart failure drugs.

Merck’s consumer care division makes Coppertone sun care products, Dr. Scholl’s foot health and allergy brand Claritin

It said the deal would help it develop sales outside the US.

Bayer also expects to become the second largest player in non-prescription, over-the-counter (OTC) products as a result of the acquisition.

“With this transaction, we are acquiring leading product brands,” said Bayer HealthCare boss Olivier Brandicourt.

Bayer said it expected the integration of the two businesses to generate significant cost savings of around $200 million per year by 2017.

Bayer also said increasing its commercial presence and rolling out Merck’s brands globally would amount to an additional $400 million in revenues per year by 2017.

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