Elanco proposes divestments of some animal health products in Bayer acquisition

29 May 2020

The ACCC is seeking views on a divestment undertaking offered by Elanco in relation to its proposed acquisition of Bayer Aktiengesellschaft’s animal health business.

The ACCC has preliminary competition concerns in relation to worming treatments commonly used for cats and dogs, as the acquisition would combine ownership of Elanco’s Milbemax and, Interceptor brands with Bayer’s Drontal, Profender and Droncit brands.

Similarly, the ACCC also identified preliminary concerns due to the consolidation in sheep lice products.

The proposed divestment undertaking would require Elanco to sell the Drontal, Profender and Droncit worming brands, and the Avenge+Fly sheep lice brand to a purchaser or purchasers approved by the ACCC. 

“The release of the proposed divestment undertaking for public comment should not be interpreted as a signal that the ACCC will ultimately accept the undertaking and clear the transaction. We are following our usual practice of publicly consulting on a proposed divestment package,” ACCC Deputy Chair Mick Keogh said.

“We are seeking feedback from industry participants on whether the divestment package will be sufficient to address any competition concerns arising from the proposed acquisition.”

The ACCC now seeks views from market participants on whether the proposed undertaking would be likely to alleviate competition concerns in sheep lice treatments, and intestinal worming treatments for companion animals. Parties wishing to make a submission should do so by 10 June 2020. 

More information is available on the ACCC website at Elanco Animal Health Incorporated - Bayer Aktiengesellschaft’s animal health business.


Both Bayer and Elanco sell a wide range of animal health products in Australia, including cattle tick prevention products and various parasiticides for companion and production animals. Bayer and Elanco do not have any manufacturing or R&D facilities based in Australia.

Bayer's sheep lice products include Avenge, Piranha and Viper. These products compete with Elanco's Extinosad sheep lice product.

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