Bayer’s Animal Health business is a global leader in the segment with sales of $1.8 billion last year. The deal will create the number two in the sector.
Frankfurt am Main: German chemical and pharmaceutical group Bayer said Tuesday it was selling its Animal Health business unit to US-based drug firm  ELANCO for $7.6 billion to create an industry giant.

Bayer said in a statement that the sale, aimed at sharpening the company’s focus on life sciences, was expected to be concluded in mid-2020 pending anti-trust clearance.

Bayer’s Animal Health business is a global leader in the segment with sales of $1.8 billion last year. The deal will create the number two in the sector.

The transaction will consist of $5.3 billion in cash and $2.3 billion in Elanco stock, Bayer said. 


As it struggles with ebbing revenues and profits, Bayer is selling off several divisions including chunks of its over-the-counter medicines division, known as Consumer Health. The unit includes household-name brands like painkiller Aspirin and indigestion treatment Alka-Seltzer.

Earlier this month Bayer and its former subsidiary Lanxess announced the sale of their chemicals firm Currenta to Macquarie Infrastructure and Real Assets in Australia for 3.5 billion euros ($3.9 billion).

After taking over US seeds and pesticides giant Monsanto for $63 billion last year, the Leverkusen-based group is re-organising itself around its core businesses and biggest earners in agrichemicals and prescription pharmaceuticals.



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