GREY:VIVXF - Post by User
Post by
Carlos66on Jan 19, 2017 12:16pm
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Post# 25728612
FYI...mergers in animal health sector
FYI...mergers in animal health sectorWith the recent sign-off from the U.S. Federal Trade Commission, privately held Boehringer Ingelheim is set absorb Sanofi's (SNY -0.1%) animal health unit Merial, making it the number two player in the veterinary medicine field behind Zoetis (ZTS +0.2%). With Merck (MRK) and Eli Lilly (LLY +0.4%), the four firms control the bulk of the industry.
According to Handelsblatt Global's Siegfried Hofman, the concentration of market heft makes further consolidation unlikely, although Bayer (OTCPK:BAYRY +1.2%) is rumored to be amenable to divesting its animal health business. Merck would be a likely acquirer. Judging by other transactions, the deal would probably be valued between €6B - 8B.
I wonder if less players in the field means less opportunity to sell VIV's products.
carlos