Germany's Bayer sells Animal Health unit for $7.6 bn

Bayer to sell animal health unit to Elanco

Bayer to sell animal health unit to Elanco

According to Reuters, part of the motivation for the deal on the part of Bayer is to put a dent into its $63 billion debt, which it incurred following the takeover of controversial seed-producer Monsanto past year.

Public Employees Retirement Association of Colorado cut its position in shares of Elanco Animal Health (NASDAQ:ELAN) by 52.8% in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. It is expected to close in mid-2020 subject to approval by antitrust authorities.

Buying the Bayer division will significantly bulk up Elanco's pet business at a time when the agricultural sector has turned more volatile, analysts said. The company previously announced its divestiture of its Coppertone and Dr. Sholl's product lines in its Consumer Health business, as well the sale of a 60% interest it had in Currenta, a German-based site services provider. As a part of the deal, Bayer will receive $5.32 billion in cash, subject to customary purchase price adjustments, and $2.28 billion made up of Elanco Animal Health common shares. The Value Composite Two of Elanco Animal Health Incorporated (NYSE:ELAN) is 55. Elanco Animal Health Incorporated is based in Greenfield, United States. It develops and markets innovative products and solutions to prevent and treat diseases in companion and farm animals. In addition, the innovative Seresto™ collar is one of the fastest-growing products in this area.

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"The combination with Elanco will give rise to a leading competitor in the animal health industry, benefiting customers, employees and shareholders alike", said Bayer chief executive Werner Baumann. Elanco Animal Health has a 12 month low of $28.00 and a 12 month high of $37.61. Its products and services are created to benefit people by supporting efforts to overcome the major challenges presented by a growing and aging global population. Bayer is committed to the principles of sustainable development, and the Bayer brand stands for trust, reliability, and quality throughout the world.

The sale will help the Leverkusen, Germany-based company chip away at its debt load of around EUR35.7 billion ($39.56 billion), which soared last summer with the acquisition of US agriculture giant Monsanto. But shareholders have grown more frustrated with every loss in court, prompting Bayer in June to hire a prominent US lawyer to help to advise its board on trial tactics and mediation. At Elanco, we're driven by our vision of food and companionship enriching life - all to advance the health of animals, people, and the planet.

Analysts have put the likely Roundup settlements at $5-$10 billion, with many saying the share price reflects exaggerated market expectations of a $20-$25 billion hit.

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