Germany's Bayer AG and US drug firm Elanco Animal Health Inc aim to reach an agreement to combine their pet-health businesses as soon as next week, Bloomberg reported on Wednesday, citing people with knowledge of the matter.

Elanco plans to pay for at least a part of the deal with its stock and any deal would likely be announced around Elanco's earnings release next week, the report said.

Reuters reported last month that Bayer had approached Elanco to discuss the possible combination that would create an industry giant.

The German drugmaker is under pressure to raise cash and boost its share price after its $63 billion purchase of Monsanto.