Elanco Gets FTC Approval for Bayer Animal Buy

Elanco Animal Health has obtained approval from the US Federal Trade Commission (FTC) for its acquisition of Bayer Animal Health, clearing the final antitrust hurdle it required to complete the deal.

FTC approval conditional on certain proposed divestitures; Elanco sees necessary worldwide divestitures to be in the previously announced range of US$120 million to US$140 million of annual revenue to help advance regulatory reviews.

Elanco has also received antitrust clearance for the transaction from the European Commission (EC), as well as in Australia, Brazil, Canada, China, Colombia, New Zealand, South Africa, Turkey, Ukraine, and Vietnam.

The two companies stated Bayer would receive US$5.3 billion in cash and US$2.3 billion worth of Elanco stock based on a price of US$33.60 per share, the 30-day average price as of August 6.

Elanco said the stock amounted to 68 million shares, or a stake of about 18.2% based on Refinitiv data, but the number of shares could rise or fall by as much as 7.5%, depending on Elanco’s share price performance on the closing date.

Full Content: Bloomberg

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