{"id":261688,"date":"2020-07-15T05:03:31","date_gmt":"2020-07-15T09:03:31","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=261688"},"modified":"2020-07-15T05:03:31","modified_gmt":"2020-07-15T09:03:31","slug":"competition-bureau-resolves-concerns-related-to-elancos-acquisition-of-bayer-animal-health","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2020\/07\/15\/competition-bureau-resolves-concerns-related-to-elancos-acquisition-of-bayer-animal-health\/","title":{"rendered":"Competition Bureau resolves concerns related to Elanco\u2019s acquisition of Bayer Animal Health"},"content":{"rendered":"
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The Bureau is satisfied that this agreement, including Elanco\u2019s commitments related to poultry insecticides, will address its competition concerns in Canada. For more information on the Bureau’s review, consult our comprehensive position statement. (Pexels Photo)<\/figcaption><\/figure>\n
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The Competition Bureau announced today that it has entered into a consent agreement with Elanco Animal Health Incorporated (Elanco) to address concerns related to the company\u2019s proposed acquisition of Bayer Animal Health (BAH). Elanco has also committed to forego acquiring Bayer AG\u2019s (Bayer) Canadian distribution rights to several poultry insecticides.<\/p>\n

Following an extensive review, the Bureau concluded that Elanco and BAH are each other\u2019s closest competitors in several Canadian markets, that there are few remaining effective competitors in these markets and that the proposed transaction would have resulted in a substantial lessening of competition. The relevant markets include those for low dose canine otitis treatments, feline dewormers with tapeworm coverage and poultry insecticides with darkling beetle coverage.<\/p>\n

To remedy the Bureau\u2019s concerns, the consent agreement requires Elanco to divest its canine otitis product,\u00a0Osurnia<\/em>, as well as BAH\u2019s feline dewormer,\u00a0Profender<\/em>. The consent agreement also notes Elanco\u2019s commitment to forego acquiring the Canadian distribution rights to Bayer\u2019s\u00a0Tempo, Credo, QuickBayt<\/em>\u00a0and Annihilator\u00a0Polyzone<\/em>\u00a0poultry insecticides. Rather, Bayer\u2019s CropScience division will retain these distribution rights. The consent agreement also prevents Elanco, without the Bureau\u2019s approval, from acquiring Bayer\u2019s retained poultry insecticides with darkling beetle coverage for a period of 10 years and from acquiring a significant interest in any poultry insecticides with darkling beetle coverage for a period of 2 years without providing advance notice to the Bureau and waiting a prescribed period of time to complete the acquisition.<\/p>\n

The Bureau is satisfied that this agreement, including Elanco\u2019s commitments related to poultry insecticides, will address its competition concerns in Canada. For more information on the Bureau’s review, consult our comprehensive\u00a0position statement<\/a>.<\/p>\n<\/div>\n<\/div>\n

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Quotes<\/h2>\n

\u201cAnimal health products play a critical role in pet care and in the agri-food sector across the country. The agreement concluded today supports our commitment to take action on matters that are important to Canadians, as it will safeguard competitive prices and product choice for consumers and business owners.\u201d<\/p>\n

Matthew Boswell
\nCommissioner of Competition<\/p><\/blockquote>\n

Quick facts<\/h2>\n
    \n
  • Elanco and Bayer notified the Bureau of the agreement regarding BAH on November 22, 2019. The proposed transaction is valued at approximately CAD$10.3 billion.<\/li>\n
  • Under the agreement, the Bureau has approved Dechra Limited and Dechra Veterinary Products LLC as acceptable buyers of\u00a0Osurnia<\/em>.<\/li>\n
  • The Bureau worked closely with the U.S. Federal Trade Commission, the European Commission and the Australian Competition and Consumer Commission throughout its review of the transaction.<\/li>\n
  • Bayer Animal Health is a business unit of Bayer AG.<\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    The Competition Bureau announced today that it has entered into a consent agreement with Elanco Animal Health Incorporated (Elanco) to …<\/p>\n","protected":false},"author":33,"featured_media":261690,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,16],"tags":[],"class_list":["post-261688","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news-ca","category-news","mauthors-government-of-canada"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/261688","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=261688"}],"version-history":[{"count":1,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/261688\/revisions"}],"predecessor-version":[{"id":261691,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/261688\/revisions\/261691"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/261690"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=261688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=261688"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=261688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}