The U.S. Federal Trade Commission has approved Elanco Animal Health's 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.

“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.”

The transaction strengthens Elanco’s Innovation, Portfolio and Productivity strategy by combining Elanco’s focus on the veterinarian with Bayer’s direct-to-consumer expertise. In addition, the transaction will create a balance between the farm animal and pet health businesses. It also expands Elanco’s omnichannel approach, diversifying its pet health business into the retail and e-commerce channels.

Related:EC approves Elanco's purchase of Bayer animal health business

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 the following proposed divestitures:

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. Further, Elanco fully secured financing in the first quarter of 2020 through its equity issuance and pricing of its Term Loan B, which will fund at deal close. The transaction remains subject to customary closing conditions.

Source: Elanco, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset. 

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