Elanco to merge with Novartis Animal Health

Elanco is to be combined with Novartis Animal Health following a $5.4 billion takeover agreed by Elanco's parent company Lilly.

The all-cash transaction will strengthen and diversify Elanco, creating the second-largest animal health company in the world in terms of global revenue. This will solidify its position in the US and help it to increase its standing in Europe and elsewhere.

Novartis Animal Health has a presence in approximately 40 countries, with 2013 revenue coming to approximately $1.1 billion. Its nine manufacturing sites, six research and development facilities, 600-strong product portfolio and experienced team of more than 3,000 employees will now be transferred to Lilly and Elanco.

Jeff Simmons, president of Elanco Animal Health, said: "Combining these two great companies will enable us to provide more diversified brands, reach more market segments, expand our global footprint and strengthen our pipeline, capabilities and expertise."

This comes after the firm expanded its capabilities in the UK earlier this month with the launch of a dedicated equine business unit.