Elanco Animal Health to tweak US$7.6-billion deal with Bayer to get Canadian OK
The Bayer AG corporate logo is displayed on a building of the German drug and chemicals company in Berlin, Germany on May 23, 2016. THE CANADIAN PRESS/AP, Markus Schreiber
GATINEAU, QUE. -- Elanco Animal Health has agreed to make changes to a US$7.6-billion deal to buy several health care products for animals from Bayer AG in order to get approval from a Canadian regulator.
The Competition Bureau says it has concluded that Bayer and Elanco are each other's biggest competitors in several Canadian markets.
In order to preserve competition, Indiana-based Elanco has agreed to divest one of its prescription medications for treating dogs and one of Bayer's medications for treating cats after the deal closes.
In addition, Bayer will keep the Canadian distribution rights to several poultry insecticides that Elanco was going to acquire under the deal.
The Competition Bureau says it co-operated with its counterparts in the United States, European Union and Australia as well as with the two companies.
It has also identified Dechra Ltd. and Dechra Veterinary Products as an acceptable buyer of Elanco's canine medication, Osurnia, which is used to treat a common ear disease in dogs.
This report by The Canadian Press was first published July 14, 2020.