The federal regulator has approved Elanco’s purchase of Bayer’s animal health business with certain conditions
Elanco Animal Health plans to buy Bayer’s animal health business now that the Canadian Competition Bureau has announced it will not challenge the proposed deal.
Elanco announced a consent agreement with the bureau on July 14. It announced plans to buy Bayer Animal Health in August 2019 in a deal worth an estimated $10.3 billion.
The agreement stipulates that Elanco will sell its Canadian Osurnia and Canadian Profender businesses that it will acquire from Bayer with the purchase, according to a news release. Osurnia is a treatment for dogs and Profender is a cat dewormer.
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In its own news release, the Competition Bureau said Elanco must also forego acquisition of Canadian distribution rights to Bayer’s Tempo, Credo, QuickBayt and Annihilator Polyzone poultry insecticides. Bayer will retain those distribution rights.
“Animal health products play a critical role in pet care and in the agri-food sector across the country,” said Canada’s commissioner of competition, Matthew Boswell.
“The agreement concluded (July 14) 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.”
Elanco said it has anti-trust clearance from the European Union, Brazil, China, Colombia, Mexico, South Africa, Turkey, Ukraine and Vietnam. The United States Federal Trade Commission has also approved the deal, with the conditions that Osurnia and the U.S. rights for Elanco’s Capsta — a dog and cat flea treatment — be sold, as well as U.S rights for Elanco’s StandGuard, a pour-on for hornflies and lice in beef cattle.
“Our entry into the consent agreement is a major step in our process to close our acquisition of Bayer Animal Health, said Katie Cook, general manager of Elanco Canada, in the news release.
“The acquisition will transform our portfolio in Canada and increase our Canadian presence, bringing new solutions to the producers, salmon farmers, veterinarians, feed companies and pet owners that we serve.”
