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Competition watchdog launches probe into Dechra's $135m Elanco deal
20th Apr 2020 11:57
(Sharecast News) - The Competition and Markets Authority has launched an investigation into Dechra Pharmaceuticals' $135m acquisition of Elanco Animal Health's Osurnia brand.
The US group agreed to sell the business - a treatment for the ear infection otitis externa in dogs, with annual revenues of $31m in 2018 - to veterinary medicines specialist Dechra in an all-cash deal in January. Elanco is selling the business as part of a series of measures intended to ensure regulatory clearance for its $7.6bn acquisition of Bayer's global animal health business.
But on Monday, the UK regulator said it was launching a probe into the Dechra deal, and that it would decide whether to refer it to a phase 2 investigation by 17 June. The CMA opened a consultation last month over concerns that the deal might hurt competition in the UK.
Ian Page, chief executive of Dechra, said: "Dechra has been working with the CMA since the announcement of the proposed acquisition, so this is a necessary part of the process to obtain clearance for the deal."
Elanco did not respond immediately to a request for comment.
As at 1145 BST, shares in FTSE 250 Dechra were ahead just under 1%, at 2,706.0p.
The US group agreed to sell the business - a treatment for the ear infection otitis externa in dogs, with annual revenues of $31m in 2018 - to veterinary medicines specialist Dechra in an all-cash deal in January. Elanco is selling the business as part of a series of measures intended to ensure regulatory clearance for its $7.6bn acquisition of Bayer's global animal health business.
But on Monday, the UK regulator said it was launching a probe into the Dechra deal, and that it would decide whether to refer it to a phase 2 investigation by 17 June. The CMA opened a consultation last month over concerns that the deal might hurt competition in the UK.
Ian Page, chief executive of Dechra, said: "Dechra has been working with the CMA since the announcement of the proposed acquisition, so this is a necessary part of the process to obtain clearance for the deal."
Elanco did not respond immediately to a request for comment.
As at 1145 BST, shares in FTSE 250 Dechra were ahead just under 1%, at 2,706.0p.