After investigating the dossiers, the Vietnam Competition and Consumer Authority under the Ministry of Industry and Trade found that the acquisition deal between Elanco Animal Health Incorporated and Bayer AG does not violate Vietnam’s Competition Law.
|Elanco-Bayer deal found legal |
Accordingly, US-based provider of products and services to improve animal health and food-animal production Elanco Animal Health Inc. will spend $7.6 billion to acquire the whole animal health business of Bayer AG, a German multinational pharmaceutical and life sciences company.
In Vietnam, these two companies work in animal healthcare, including producing and providing biological products, pharmaceuticals, harmful organisms, and food supplements.
The Ministry of Industry and Trade (MoIT) assigned the Vietnam Competition and Consumer Authority (VCCA) to check and investigate the large economic concentration between Elanco and Bayer AG in line with the Competition Law 2018.
Based on the VCCA's findings, the MoIT has just concluded that the economic concentration between Elanco and Bayer AG has not resulted in an illegally large economic concentration but will nevertheless dominate the market of antimicrobial drugs for pigs in Vietnam.
Thus, the MoIT recommended the company to carry out some solutions outlined in the Competition Law to ensure supervision by the authorities at the company.
Bayer has been operating in Vietnam since 1994 with two modern factories in Dong Nai and Binh Duong provinces and two branch offices in Hanoi and Ho Chi Minh City to support business activities. It specialises in pharmaceuticals, consumer health crop science, and animal health in Vietnam.
In August 2019, Elanco Animal Health announced to buy Bayer’s veterinary drugs unit in a cash and stock deal valued at $7.6 billion, creating the second-largest maker of medicines for pets and livestock over the world and expanding Elanco’s reach online.