Elanco Animal Health has announced it has entered into an agreement with Bayer AG to acquire its animal health business in a transaction valued at US$7.6 billion (£6.2 billion).
The transaction, which is subject to regulatory approval and other customary closing conditions is expected to be completed in mid-2020, and will create the second largest animal health company in the world.
Elanco said it expected the combined organisation to continue to deliver mid-single digit revenue growth.
Bayer AG’s chief executive officer, Werner Baumann, said: “Our animal health business is among the pioneers of this sector, having built up an attractive portfolio and secured well-established market positions in the companion and farm animal segments. And now, the combination with Elanco will give rise to a leading competitor in the animal health industry, benefiting customers, employees and shareholders alike.”