Bayer Says Still Focused on Animal-Health Sale After Elanco Merger Reports

By Patrick Costello

Bayer AG (BAYN.XE) continues to pursue its plans to exit the animal-health business via a sale, the company said Thursday, following press reports of a potential deal with Elanco Animal Health Inc. (ELAN).

"Bayer is on track with its plans to exit the animal-health business," a spokesman for Bayer said. "Following a strategic review of exit options, the primary focus is on a sale."

However, the German chemical and pharmaceutical giant is considering "all value-maximizing options," he added.

Bloomberg reported Wednesday that Elanco was aiming to reach a deal to merge its business with Bayer's animal-health unit as early as next week when Elanco releases earnings Aug. 13.

Bayer declined to comment further on the reports.

The deal as currently discussed would see Bayer gain a significant minority stake in Elanco, Bloomberg says, adding that the company would likely proceed with its original plans for a sale if an agreement with Elanco can't be reached.

Bayer is expected to sell its animal-health unit for as much as 8 billion euros ($8.97 billion) as part of its wider strategy of paring down its business following its acquisition of Monsanto Co., according to Bloomberg.

Write to Patrick Costello at [e-mail].

(END) Dow Jones Newswires

August 08, 2019 03:22 ET (07:22 GMT)

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