Agribusiness

Elanco’s acquisition of Bayer’s animal health business not opposed

Beef Central, July 9, 2020

The ACCC had concerns about the effect of the acquisition in the markets for sheep lice treatments, and worming treatments for cats and dogs.

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.”

The ACCC will issue a public competition assessment shortly. Further information is available at Elanco Animal Health Incorporated – Bayer Aktiengesellschaft’s animal health business.

Background

Both Bayer and Elanco sell a wide range of animal health products in Australia, including various parasiticides for companion and production animals. Bayer and Elanco do not have any manufacturing or R&D facilities based in Australia.

Bayer’s sheep lice products include Avenge+ Fly, Piranha and Viper. These products compete with Elanco’s Extinosad sheep lice product.

Elanco’s dog and cat worming brands include Milbemax and Interceptor. These products compete with Bayer’s Drontal, Profender and Droncit products.

Source: ACCC

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