FTC makes second request in Elanco, Bayer Animal Health transaction

Approximately $7.6 billion deal still expected to close in mid-2020.

December 11, 2019

2 Min Read
FTC makes second request in Elanco, Bayer Animal Health transaction

Elanco Animal Health announced this week that it has received a second request for information from the U.S. Federal Trade Commission (FTC) regarding its previously announced acquisition of Bayer AG’s animal health business. The request was anticipated as part of the regulatory process under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and the review continues to progress as expected, the company said.

“We continue to work collaboratively with the FTC and other regulators around the world and are progressing as expected,” said Jeff Simmons, president and chief executive officer of Elanco. “We remain confident in our expectations that any related dispositions will be consistent with the underlying pro-forma financials referenced in our August acquisition announcement.”

According to the company, joining Elanco and Bayer Animal Health will strengthen and accelerate Elanco’s Innovation, Portfolio and Productivity (IPP) strategy, advance the portfolio mix transformation and create balance between the food animal and companion animal segments, while expanding its presence in key emerging markets.

Elanco continues to expect the approximately $7.6 billion deal will close in mid-2020.

The second request was issued under notification requirements of the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976, as amended. The effect of the second request is to extend the waiting period imposed by the HSR Act until 30 days after the parties have substantially complied with the request, though it is common for that period to be extended voluntarily by the parties or terminated sooner by the FTC.

According to Bayer, the exit of the Animal Health business marks the largest transaction in the series of portfolio measures initiated by Bayer in November 2018. The company had previously announced the divestiture of its Consumer Health brands Coppertone and Dr. Scholl’s, along with the sale of its 60% stake in German site services provider Currenta.

Bayer’s Animal Health business is a global leader in the segment, with sales of $1.8 billion in fiscal 2018.

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