8/20/2019, 11:49 AM (Source: TeleTrader)
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Elanco to buy Bayer's animal health unit for $7.6B

United States company Elanco Animal Health Inc. will purchase pharmaceutical giant Bayer AG's animal health business for $7.6 billion, the two companies announced on Tuesday.

Under the terms of the agreement, Bayer will receive around $5.3 billion in cash with the remaining $2.3 billion being composed of Elanco stock. The German company also said that it intends to exit its stake in Elanco over time. The transaction is expected to be concluded in mid-2020 subject to regulatory approvals and other customary closing conditions.

"Our Animal Health business is among the pioneers of this sector, having built up an attractive portfolio and secured well-established market positions in the companion and farm animal segments," said Bayer CEO Werner Baumann. "And now, the combination with Elanco will give rise to a leading competitor in the animal health industry, benefiting customers, employees and shareholders alike," he added.

Breaking the News / DZ