US Markets

Elanco to divest brands, forgo Canadian rights for Bayer's unit deal

Credit: REUTERS/WOLFGANG RATTAY

Elanco Animal Health Inc has decided against acquiring Bayer AG's Canadian distribution rights to several poultry insecticides, Canada's Competition Bureau said on Tuesday, as it looks to complete a $7.6-billion deal.

July 14 (Reuters) - Elanco Animal Health Inc ELAN.N has decided against acquiring Bayer AG's Canadian distribution rights to several poultry insecticides, Canada's Competition Bureau said on Tuesday, as it looks to complete a $7.6-billion deal.

The U.S.-based company will also divest its canine ear infection treatment product Osurnia and Bayer's feline dewormer Profender to address competition concerns about its acquisition of the German firm's veterinary drugs unit.

The Competition Bureau said Elanco and Bayer's BAYGn.DE animal health unit were each other's closest rivals in several Canadian markets and a potential combination would result in a substantial decrease in competition.

It added that Elanco could not buy Bayer's other poultry insecticides with darkling beetle coverage for 10 years and significant interest in any such product for two years without providing an advance notice to the Bureau.

Bayer's CropScience unit has the Canadian distribution rights to its poultry insecticides Tempo, Credo, QuickBayt and Annihilator Polyzone.

Elanco last month secured European Union antitrust clearance to buy Bayer's veterinary drugs unit after pledging to sell some products to address competition concerns regarding the deal.

(Reporting by Praveen Paramasivam in Bengaluru; Editing by Aditya Soni)

((Praveen.Paramasivam@thomsonreuters.com; within U.S. +1 646 223 8780 (Extn. 3478), outside U.S. +91 80 6182 3478;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

ELAN

Latest Markets Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More