Continues progress toward antitrust clearance for Bayer AG's animal health business
Elanco Animal Health Incorporated (NYSE: ELAN) today announced 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 (ETR: BAYN) 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.
ABOUT ELANCO
Elanco (NYSE: ELAN) is a global animal health company that develops products and knowledge services to prevent and treat disease in food animals and pets in more than 90 countries. With a 65-year heritage, we rigorously innovate to improve the health of animals and benefit our customers, while fostering an inclusive, cause-driven culture for more than 5,800 employees. At Elanco, we're driven by our vision of food and companionship enriching life all to advance the health of animals, people and the planet. Learn more at www.elanco.com
Forward Looking Statement
This press release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) about our expectations concerning our antitrust filings with the EC and other regulators in connection with our acquisition of the animal health business of Bayer AG, and reflects Elanco's current belief. Forward-looking statements are based on our current expectations and assumptions regarding our business and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. For further discussion of these and other risks and uncertainties, see Elanco's most recent filings with the United States Securities and Exchange Commission. Except as required by law, Elanco undertakes no duty to update forward-looking statements to reflect events after the date of this release.
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Contacts:
Investor Contact: Jim Greffet +1.317.383.9935 greffet_james_f@elanco.com
Media Contact: Colleen Parr Dekker +1.317.989.7011 colleen_parr_dekker@elanco.com
