GREENFIELD, Ind. — Elanco Animal Health Inc. has received unanimous approval from the U.S. Federal Trade Commission for its acquisition of Bayer Animal Health, a division of Bayer AG. The FTC decision represents the final antitrust clearance needed to complete the transaction, which continues on track for closing at the beginning of August, the company said in a press release.
The FTC is requiring Elanco (NYSE: ELAN) to divest three animal health products to settle charges that the proposed acquisition would likely be anticompetitive in those markets.
Elanco continues to expect necessary worldwide divestitures to be in the previously announced range of $120 million to $140 million of annual revenue to help advance regulatory reviews. The FTC’s approval is conditional on these proposed divestitures:
- Worldwide rights for Elanco’s Osurnia, a treatment for otitis externa in dogs, being sold to Dechra Pharmaceuticals PLC (LON: DPH).
- U.S. rights for Elanco’s Capstar, an oral tablet that kills fleas in dogs and cats, being sold to PetIQ Inc. (Nasdaq: PETQ).
- 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. (NASDAQ: NEOG).
“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,” said 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.”
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.
The deal “strengthens Elanco’s Innovation, Portfolio and Productivity strategy by combining Elanco’s long-standing focus on the veterinarian with Bayer’s direct-to-consumer expertise, proven even more important as a result of the COVID-19 pandemic,” the company stated.
“In addition, the transaction will advance Elanco’s intentional portfolio transformation, creating a balance between the farm animal and pet health businesses. It also expands Elanco’s omnichannel approach, substantially diversifying its pet health business into the retail and e-commerce channels allowing Elanco to reach pet owners and serve veterinarians with a multi-faceted approach.”