The statement outlines the key competition issues that the Commission considers important in deciding whether or not to grant clearance to the proposed acquisition.

We invite interested parties to provide comments on the likely competitive effects of the proposed acquisition. We request that submissions are received by close of business on 6 May 2020. The Commission acknowledges that some interested parties may face a range of challenges during the current COVID-19 alert levels and the variation of levels as and when they are altered.

This may impact their ability to submit in a meaningful way within these timeframes. If you would like to make a submission but face difficulties in doing so within the timeframe, please ensure that you register your interest with the Commission at registrar@comcom.govt.nz so that we can work with you to accommodate your needs where possible.

The Commission is currently scheduled to make a decision on the application by 26 May 2020. However, this date may be extended.

The Statement of Preliminary Issues and a public version of the application can be found on the Commission’s case register.

Background

Dechra is a UK-based global animal healthcare company that develops, manufactures and distributes healthcare treatments for a range of companion animals (such as cats and dogs) and production animals (such as pigs, poultry and cattle).

Elanco also develops, manufactures and distributes healthcare treatments for a range of different companion and production animals on a global basis.

In New Zealand, Dechra and Elanco overlap in the supply of products used in the treatment of otitis in dogs. Otitis is an inflammation of the external ear canal and it is a common affliction in dogs.

Currently the Commission is also considering an application from Elanco seeking clearance to acquire Bayer AG’s animal health business which includes a treatment for otitis in dogs. We are considering the two applications in tandem.

We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.

Further information explaining how the Commission assesses a merger application is available on our website.