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Elanco receives FTC approval for Bayer Animal Health acquisition

FTC decision represents final antitrust clearance needed to complete transaction, which continues on track for early-August closing.

Elanco Animal Health Inc. announced July 15 that it has received unanimous approval from the U.S. Federal Trade Commission (FTC) for its acquisition of Bayer Animal Health, a division of Bayer AG.

Elanco said the FTC decision represents the final antitrust clearance needed to complete the transaction, which continues on track for closing at the beginning of August.

“This approval marks the near-final step in fulfilling our vision of bringing together two dedicated animal health companies focused on delivering innovation and an expanded portfolio of solutions to farmers, veterinarians and pet owners around the globe,” Elanco president and chief executive officer Jeff Simmons said. “As we approach closing and look toward putting our integration plans into action, I want to thank everyone who has worked so tirelessly on this transaction, especially during these challenging times. Their hard work has positioned the combined company for success, and we look forward to welcoming our new colleagues to Elanco in the very near future.”

Elanco said it continues to expect necessary worldwide divestitures to be in the previously announced range of $120-140 million of annual revenue to help advance regulatory reviews. FTC’s approval is conditional on the following proposed divestitures:

  • Worldwide rights for Elanco’s Osurnia, a treatment for otitis externa in dogs, being sold to Dechra Pharmaceuticals PLC;
  • U.S. rights for Elanco’s Capstar, an oral tablet that kills fleas in dogs and cats, being sold to PetIQ Inc., and
  • U.S. rights for Elanco’s StandGuard, a pour-on treatment for horn fly and lice control in beef cattle, being sold to Neogen Corp.

In addition to FTC approval, Elanco has received antitrust clearance for the transaction from the European Commission as well as in Australia, Brazil, Canada, China, Colombia, New Zealand, South Africa, Turkey, Ukraine and Vietnam. Further, Elanco fully secured financing in the first quarter of 2020 through its equity issuance and pricing of its Term Loan B, which will fund at the deal's close.

The transaction remains subject to customary closing conditions.

Elanco is a global animal health company that develops products and knowledge services to prevent and treat disease in farm animals and pets in more than 90 countries.

TAGS: Business
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