Chemical group Bayer has sold its Animal Health business unit to US-based company Elanco for $7.6bn. The move comes as the German company sells off assets following its $63bn acquisition last year of US seeds and pesticides group Monsanto, the makers of the glyphosate containing Roundup.

Bayer is facing the possibility of having to pay billions of dollars in compensation, in the wake of mounting legal claims that herbicides containing glyphosate may cause cancer.

Bayer’s Animal Health business sells veterinary products for both pets and livestock, including the well-known Bayticol brand. It is a global leader in the segment with sales of $1.8bn last year.

Bayer has lost a third of its market value since the middle of last year and is selling off several divisions. The Elanco deal, which is expected to close in mid 2020, means the group now has agreements in place for all its planned divestments. This leaves the focus on its legal battles and it is back in the court room with Roundup in October.