(Reuters) – German drugmaker Bayer AG is close to selling its diabetes devices business to KKR-backed Panasonic Healthcare Holdings Co Ltd and the unit could be valued at up to $2.3 billion, Bloomberg news reported.
The announcement of the buyout may come as early as Friday, although the talks are ongoing and an agreement may be delayed or fall apart, Bloomberg said, citing sources with knowledge of the matter.
People familiar with the process said in November that the unit could be valued at between 1 billion euros and 2 billion euros ($1.1 billion-$2.3 billion), according to Bloomberg.
Panasonic Healthcare spokesman Hideo Fujimoto declined to comment on the report. A Tokyo-based KKR spokesman also declined to comment.
The U.S. private equity firm owns 80 percent of Panasonic Healthcare and Panasonic Corp owns 20 percent.
Bayer is overhauling its structure as it focuses on margin-rich healthcare sectors. It also plans to list its plastics business on the stock market to free up money for investments and acquisitions in healthcare, veterinary drugs and crop protection products.