Elanco Animal Health Incorporated announces it has formally submitted its Form CO notification to the European Commission. This is a standard part of the process to gain regulatory approval for the previously announced acquisition of Bayer AG’s animal health business. This follows several months of constructive pre-notification discussions and triggers the start of the statutory period for the Commission’s review and approval of the transaction. The European Commission will now have until June 8 to make its decision.
“This is another positive step in our progress toward finalizing the acquisition of Bayer AG’s animal health business,” said Jeff Simmons, president and CEO of Elanco. “Despite these unprecedented conditions created by the COVID-19 pandemic, we continue to be on track with our original mid-2020 closing timing.”
Joining Elanco and Bayer Animal Health will strengthen and accelerate Elanco’s Innovation, Portfolio and Productivity (IPP) strategy, advance the portfolio mix transformation and create balance between the food animal and companion animal businesses, while expanding its presence in key emerging markets. Additionally, the transaction will continue to expand Elanco’s omni-channel approach substantially diversifying the company’s companion animal business into the over-the-counter (OTC) channel, as Elanco continues to determine the best methods for reaching pet owners and veterinarians.
The Form CO specifies the information notifying parties must provide when submitting a proposed merger to the European Commission.
Elanco has already received regulatory clearance in China, Colombia, Turkey and Ukraine, and is continuing to cooperate with agencies in other jurisdictions. The Company has already announced total divestitures to date in the range of $120 million to $140 million of revenue with a view to completing all the regulatory reviews. Further, Elanco has fully secured financing to complete the transaction through its completed equity issuance and pricing of its Term Loan B earlier in the first quarter.
