Company or individual details
- Elanco Animal Health Incorporated
- Elanco Australasia Pty Ltd076 745 198
On 9 July 2020, the ACCC announced it had accepted an undertaking (the Undertaking) from Elanco Animal Health Incorporated and its subsidiary Elanco Australasia Pty Ltd pursuant to s 87B of the Competition and Consumer Act 2010 (Cth) in connection with Elanco Animal Health Incorporated’s proposal to acquire Bayer AG’s animal health business (the Proposed Acquisition).
The ACCC was concerned that without the Undertaking, the Proposed Acquisition may have the effect, or may be likely to have the effect, of substantially lessening competition in the markets for:
- The supply of sheep lice products in Australia (Sheep Lice Market), whereby the Proposed Acquisition would combine the largest suppliers of sheep lice treatments, resulting in Elanco having the incentive and ability to increase prices for its sheep lice treatments post-acquisition.
- The supply of gastro intestinal worming treatments for companion animals in Australia (Gastro Intestinal Worming Market Market), whereby the Proposed Acquisition would remove one of Elanco’s closest competitors and therefore be likely to lead to increased prices.
The objective of the Undertaking is to address the ACCC’s competition concerns, which it otherwise considers would be likely to arise as a consequence of the Proposed Acquisition.
The Undertaking aims to achieve this objective by placing obligations on Elanco to:
- ensure that each of the Divestiture Businesses are sold to an ACCC Approved Purchaser that will result in the creation or strengthening of a viable, effective, stand-alone, independent and long term competitor(s) in the Sheep Lice Market and Gastro Intestinal Worming Market;
- ensure the purchaser(s) of the Divestiture Business have all the necessary associated assets and rights to compete effectively with Elanco in the Sheep Lice Market and/or Gastro Intestinal Worming Market;
- maintain the economic viability, marketability, competitiveness and goodwill of the Divestiture Businesses prior to divestiture; and
- provide for the effective oversight of Elanco' compliance with the Undertaking.