Elanco Animal Health has received regulatory approval of its acquisition of Bayer Animal Health after agreeing to several anti-trust related conditions.
The US$7.6 billion deal was announced in August 2019.
As part of its review, Canada’s Competition Bureau found Elanco and Bayer Animal Health are each other’s closest competitors in several markets, specifically in poultry insecticides for controlling darkling beetles, low dose treatments for a common ear disease in dogs, and feline dewormers with tapeworm coverage.
To address these concerns, the Competition Bureau announced this week that Elanco has agreed to forego acquiring the Canadian distribution rights to Bayer’s Tempo, Credo, QuickBayt and Annihilator Polyzone insecticides for poultry facilities. Elanco will also divest its canine otitis product, Osurnia, as well as Bayer Animal Health’s feline dewormer, Profender.
“Animal health products play a critical role in pet care and in the agri-food sector across the country. The agreement concluded today supports our commitment to take action on matters that are important to Canadians, as it will safeguard competitive prices and product choice for consumers and business owners,” notes Matthew Boswell, Commissioner of Competition, in the Competition Bureau’s news release.
In the U.S., the Federal Trade Commission also announced this week that it is requiring Elanco sell its U.S. rights for StandGuard, a pour-on treatment for horn fly and lice control in beef cattle, to Neogen Corporation, as well as Capstar, an oral tablet that kills fleas in dogs and cats, to PetIQ, Inc. The FTC is also requiring Elanco sell its Osurnia product for dogs to Dechra Pharmaceuticals.
“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,” says Jeff Simmons, president and CEO of Elanco. “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 has already received antitrust clearance for the acquisition of Bayer Animal Health from the European Commission, as well as regulators in Australia, Brazil, China, Colombia, New Zealand, South Africa, Turkey, Ukraine, and Vietnam. The deal is still subject to other closing conditions.
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