EU Clears Bayer Takeover

The European Union Commission has cleared Bayer AG's proposal to takeover Chiron Corp.'s clinical diagnostics division, stating that the change will not hinder competition in the relevant markets.

Under the terms of the deal, Chiron (Emeryville, CA) will receive $1.1 billion from Bayer AG for its in-vitro diagnostic business and will receive license fees and royalties for HIV-related intellectual property. The unit makes and sells blood chemistry tests and systems that check tissue samples for infectious agents.

Chiron will have three remaining business units: one that develops vaccines, a second that sells cancer treatments and a third that uses genetic engineering techniques to develop new drugs. It will retain its profitable blood-screening business, which last year posted a $93 million operating profit.

For more information: Chiron Corp., 4560 Horton St., Emeryville, CA 94608-2916, USA. Telephone: 510-655-8730. Fax: 510-655-9910.