[PARIS] Bayer AG agreed to sell its diabetes devices business to Panasonic Healthcare Co, a joint venture backed by buyout firm KKR & Co, for about 1 billion euros (S$1.52 billion).

The unit makes blood-glucose monitoring systems and other devices for people with diabetes, Leverkusen, Germany-based Bayer and Tokyo-based Panasonic said in a statement today.

Bayer Chief Executive Officer Marijn Dekkers is shedding peripheral units as he focuses on more lucrative life-sciences operations. In addition to the diabetes sale, the company plans to list its plastics unit on the stock market in coming months.

KKR owns 80 per cent of Panasonic Healthcare, which develops, manufactures, sells and services medical equipment. Japan's Panasonic Corp owns the rest.

The Bayer unit garnered sales of 909 million euros in 2014 and had worked with Panasonic Health before, marketing some of the company's products. It faces competition from newer reading devices.

The companies expect to complete the transaction in the first quarter of next year, after review by regulators. They didn't disclose more financial details.

BLOOMBERG