Elanco Animal Health has entered into a $7.6 billion agreement with Bayer to acquire its animal health business. The transaction which is subject to regulatory approval will double Elanco’s companion animal business. National Farmers Union President Roger Johnson says it could become a large ag concentration issue but at this point, his group is reviewing the deal.
Organization for Competitive Markets Executive Director Joe Maxwell sees this possible acquisition as negative for agriculture causing more costs for producers in the long run.
Johnson says it will take time to review the acquisition because while part of it could be seen as positive, there’s a chance it might not turn out that way.
Should the transaction be approved by regulators, Elanco would become the second largest global animal health company. The transaction is expected to close in mid 2020.
