ACCC: Elanco’s acquisition of Bayer’s animal health business not opposedChristian Fernsby ▼ | July 10, 2020
Australian Competition and Consumer Commission ACCC will not oppose Elanco’s acquisition of Bayer AG’s animal health business, after Elanco provided a court-enforceable undertaking to divest four animal parasite treatment brands.
Topics: ACCC Elanco Bayer
Elanco will divest Avenge+ Fly, a sheep lice treatment, as well as Drontal, Profender and Droncit which treat gastro intestinal worms in cats and dogs. The future buyer or buyers of these brands will need to be approved by the ACCC.
“Elanco’s acquisition was likely to raise competition concerns in the supply of sheep lice treatments. Without the divestment, Elanco would have significantly increased its market share in the supply of sheep lice treatments,” ACCC Deputy Chair Mick Keogh said.
“Avenge+ Fly is an established and popular brand, and will provide a strong constraint on Elanco in the hands of a future buyer.”
“In relation to worming treatments for cats and dogs, the acquisition would have removed Bayer as Elanco’s closest competitor, leaving Elanco with many of the leading worming brands,” Mr Keogh said.
“Drontal in particular is a strong brand, and this divestment will remove any overlap between Bayer and Elanco in worming treatments.” ■