Medical imaging giant Siemens is joining rival GE Healthcare in the molecular diagnostics field by purchasing Bayer HealthCare's Diagnostics division.

Under the terms of the acquisition, announced last week, Siemens will buy the unit for $5.34 billion, and the transaction is expected to be complete in the first half of 2007. Bayer will retain its diabetes diagnostics unit under the Diabetes Care Division moniker.

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