July 14, 2020 / 7:45 PM / 22 days ago

Elanco to divest brands, forgo Canadian rights for Bayer's unit deal

FILE PHOTO: The logo of Bayer AG is pictured at the facade of the historic headquarters of the German pharmaceutical and chemical maker in Leverkusen, Germany, April 27, 2020. REUTERS/Wolfgang Rattay

(Reuters) - Elanco Animal Health Inc (ELAN.N) has decided against acquiring Bayer AG’s Canadian distribution rights to several poultry insecticides, Canada’s Competition Bureau said on Tuesday, as it looks to complete a $7.6-billion deal.

The U.S.-based company will also divest its canine ear infection treatment product Osurnia and Bayer’s feline dewormer Profender to address competition concerns about its acquisition of the German firm’s veterinary drugs unit.

The Competition Bureau said Elanco and Bayer’s (BAYGn.DE) animal health unit were each other’s closest rivals in several Canadian markets and a potential combination would result in a substantial decrease in competition.

It added that Elanco could not buy Bayer’s other poultry insecticides with darkling beetle coverage for 10 years and significant interest in any such product for two years without providing an advance notice to the Bureau.

Bayer’s CropScience unit has the Canadian distribution rights to its poultry insecticides Tempo, Credo, QuickBayt and Annihilator Polyzone.

Elanco last month secured European Union antitrust clearance to buy Bayer’s veterinary drugs unit after pledging to sell some products to address competition concerns regarding the deal.

Reporting by Praveen Paramasivam in Bengaluru; Editing by Aditya Soni

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