German pharmaceutical giant Bayer is planning to buy Auckland-based animal health company Bomac for an undisclosed amount.
Bomac was founded in 1958 and is New Zealand's largest privately-owned company that researches drugs for veterinary use.
Bayer already distributes Bomac's products internationally and says it is attracted to the company's ability to develop new products and get them to the market quickly.
Dr Alexander Jahn of Bayer Animal Health says his company Bayer is particularly interested by Bomac's highly successful mastitis treatments for dairy cows.
Bomac managing director Connel McLaren says Bayer's desire to set up a research and development hub in New Zealand will mean greater international exposure of Bomac's products.
Mr McLaren says Bomac will keep its existing company name and branding.
Both parties hope the purchase will be approved and finalised by early next year.