For $14.2 billion, Bayer AG, a German pharmaceutical and chemical company plans to acquire consumer health business of Merck & Company. This deal would expand Bayer’s range of non-prescription medications.

The deal would also give the German drugmaker control over well-known household brands such as Dr. Scholl’s, Claritin and Coppertone.

Chief Executive Officer of Bayer, Marijn Dekkers said in a statement that this acquisition marks a major milestone on their path towards global leadership in the lucrative nonprescription medicines business.

Both the companies also agreed to cooperate on developing and selling drugs in a new class known as sGC modulators which have potential for treating some heart conditions. Bayer added that it had agreed to a strategic collaboration with Merck to commercialize medications and develop medications for the cardiovascular diseases. According to the terms of the deal, Merck will shell out $1 billion to Bayer and up to $1.1 billion for achieving sales milestones.

The deal which requires regulatory approval is expected to close in the second half of 2014. Part of the acquisition price includes a payment related to sales of Afrin and Claritin in countries where these medications are available to consumers on prescription only.

Merck’s shares fell by 2.6% or $1.52 to $57.11 and shares of Bayer also dropped by 0.8% or $1.07 to $137.88.

This partnership also includes a drug manufactured by Bayer known as Adempas which is used for treating high blood pressure in lung blood vessels. The deal also includes a chronic heart failure drug which is in midstage patient testing and other experimental drugs in earlier stages of research.

Like other major drugmakers, Merck has seen prescription drug sales decline with cheap generic competition for several drugs that once earned billions of dollars for the company annually. Those include Singulair, an allergy pill, Nasonex, an allergy spray, and Hyzaar and Cozaar, for high blood pressure.