The deal also reduces emphasis on Bayer's pharmaceuticals business, which has had trouble developing new drugs.

Technology One drug manufacturer sees parallels to horse racing in the risks and rewards of the pharmaceuticals business.

Gaining size by aligning with partners is especially important for the pharmaceuticals business, which in recent years has fallen behind rivals.

Bayer said in September that it would backtrack on a plan favored by shareholders to sell its pharmaceuticals business.

The company said the move would allow it to concentrate on its pharmaceuticals business, which is growing faster than Monsanto's agricultural business.

The company also said that it planned to seek alliances in the pharmaceuticals business.

The company is believed to be especially interested in acquisitions in the American pharmaceuticals business.

The company's biggest gains came from its international pharmaceuticals business, which increased the company's revenues by 25.6 percent.

Investors have expressed their anxiety over whether the company paid too much to enter an industry that will distract it from its pharmaceuticals business.

Only when the stock price came under pressure did he relent and separate the chemicals business from the pharmaceuticals business.