Sector News

Bayer completes divestment of its animal health business to Elanco

August 4, 2020
Chemical Value Chain

Bayer says it has completed the sale of its animal health business unit to Elanco Animal Health (Greenfield, Indiana), after the fulfilment of closing conditions, including the receipt of regulatory approvals.

Bayer received $5.17 billion in cash, before tax and after deduction of customary purchase price adjustments, together with 72.9 million shares of Elanco Animal Health common stock, corresponding to 15.5% of its outstanding stock, the company says. The shares are subject to certain retention periods until mid-2021, but Bayer maintains its intention to divest the stake in Elanco in due course, it says.

“This transaction creates one of the global animal health leaders,” says Werner Baumann, chairman of Bayer.

Under the terms of the agreement with Elanco, all Bayer animal health employees will have at least one year of employment protection against unilateral termination with similar and no less favorable benefits in the aggregate, Bayer says.

Divesting the animal health business is the largest transaction in a series of portfolio measures Bayer initiated in November 2018 following its $63-billion acquisition of Monsanto.

By: Sotirios Frantzanas

Source: Chemical Week

comments closed

Related News

May 15, 2022

New York’s EPR and packaging reduction bills lauded as game-changers in plastic pollution battle

Chemical Value Chain

The US State of New York is introducing two new bills to combat over-packaging, poor recycling rates and litter issues, including an Extended Producer Responsibility (EPR) program requiring companies such as McDonald’s and Amazon to pay for the cost of packaging disposal and recycling.

May 15, 2022

Borealis and Reclay launch entity focused on lightweight packaging 

Chemical Value Chain

The new organization’s mission is to redesign the critical steps of the plastics sorting and recycling system for post-consumer lightweight packaging (LWP) to speed up circularity, born from a need to meet the rising market demand for high-quality recyclates for use in high-end plastic applications.

May 15, 2022

Starbucks and Hubbub launch reusable packaging fund as COVID-19 diminishes consumer appetite

Chemical Value Chain

Starbucks and Hubbub have launched a £1 million (US$1.22 million) “Bring It Back Fund” to increase the uptake of reusable packaging in the F&B industry. The funding will go toward innovative ideas that make it easier for customers to use alternatives to single-use packaging by supporting pilot projects that help shift consumption habits.