EC approves acquisition of Bayer's animal health division by Elanco

The transaction would lead to the creation of the second largest animal health company globally. Both Elanco and Bayer's animal health division (“BAH”) develop and supply pharmaceuticals for pets and livestock worldwide. The Commission found that the transaction, as originally notified, would have raised competition concerns in a number of countries in the EEA/UK in relation to otitis products for pets, as well as several types of parasiticides. In these markets, both companies have strong positions and/or face a limited number of competitors. To address these concerns, Elanco and BAH offered to divest to one or more suitable purchasers, Elanco or BAH's products and/or pipelines in relation to otitis, anticoccidials, parasiticides for pets in the EEA/UK, including all the necessary assets such as applicable licenses, contracts, and brands, as well as relevant studies and data.

The proposed commitments remove the entire overlaps between Elanco and BAH in the markets raising serious doubts and fully address all of the Commission's competition concerns. The Commission therefore concluded that the transaction, as modified by the commitments, would no longer raise competition concerns in the EEA. The decision is conditional upon full compliance with the commitments. Executive Vice-President Margrethe Vestager, responsible for competition policy, said: “Veterinaries, pet-owners and farmers count on innovative and competitively priced pharmaceutical products for animals. The acquisition by Elanco of Bayer's Animal Health division would have significantly reduced the current and future choice of competing and innovative drugs available to vets, pet owners and farmers for certain animal diseases. With the divestment of current and pipeline products treating ear infections and parasites in pets and livestock, the merger can go ahead whilst preserving competition and innovation in these markets.“

The full press release is available online.