The Federal Trade Commission has unanimously approved Greenfield-based Elanco Animal Health Inc.’s (NYSE: ELAN) proposed $7.6 billion acquisition of Bayer Animal Health. Elanco says the approval is the final antitrust clearance it needed to close the deal, which is expected to take place in August.
Bayer Animal Health is a subsidiary of Germany-based Bayer AG. The FTC approval comes just over a month after the deal received approval from the European Commission.
“This approval marks the near-final step in fulfilling our vision of bringing together two dedicated animal health companies focused on delivering innovation and an expanded portfolio of solutions to farmers, veterinarians and pet owners around the globe,” Jeff Simmons, president chief executive officer of Elanco, said in a news release. “As we approach closing and look toward putting our integration plans into action, I want to thank everyone who has worked so tirelessly on this transaction, especially during these challenging times.”
The FTC approval comes with conditions that Elanco must make certain divestitures, which the company says would be in the range of $120 million to $140 million of annual revenue.
The proposed divestitures include:
- Worldwide rights for Elanco’s Osurnia, a treatment for otitis externa in dogs, being sold to Dechra Pharmaceuticals PLC.
- U.S. rights for Elanco’s Capstar, an oral tablet that kills fleas in dogs and cats, being sold to PetIQ, Inc. (Nasdaq: PETQ).
- U.S. rights for Elanco’s StandGuard, a pour-on treatment for horn fly and lice control in beef cattle, being sold to Neogen Corp. (Nasdaq: NEOG).
The acquisition also previously received antitrust clearance in Australia, Brazil, Canada, China, Colombia, New Zealand, South Africa, Turkey, Ukraine, and Vietnam.
When the deal is complete, Elanco says it will become the second-largest animal health company by revenue.