Page 11 - National Poultry News

Elanco’s pending acquisition of Bayer Animal Health
Free trade talks with the UK
FREE trade talks between the UK and Australia officially began on June 29 as Australia looks to shore up trade rela- tionships beyond China.
newed focus on the in- terests of farmers.
to the people of the UK. “Our standards in relation to animal wel- fare, food safety, labour and the environment are exemplary, and are tailor-made to suit the unique circumstances of Australian agricul-
Australia’s Trade Minister Simon Bir- mingham announced the formal start of trade talks after years of background negotia- tions between the UK and Australia.
As a collective, Aus- tralian farmers export about two thirds of what they produce, with expanded export mar- kets key to the agricul- ture sector’s continued growth.
ture.
“Australia’s regulatory
The Australian gov- ernment hopes to final- ise a deal within the year, a much quicker pace than it usually takes to reach an agree- ment.
promised.”
Continuing to expand
“Australia will be looking to secure better market access for goods exports, especially in agriculture, and high standard rules for digi- tal trade and investment to expand our already deep economic relation- ship,” Mr Birmingham said.
“The removal of these barriers is necessary to ensure Australian farm- ers can engage in fair andhealthycompetition with their UK counter- parts,” Ms Simson said.
“The farm sector and regional Australia are well placed to acceler- ate a return to the eco- nomic prosperity Aus- tralians have become accustomed to,” Ms Simson said.
Despite the poten- tial benefits of a UK trade deal, its value will pale in comparison to Australia’s exports to China.
“We know that what’s important to Australi- ans in terms of how our food and fibre is pro- duced, is also important
“NFF is optimistic that negotiations could be concluded promptly so the benefits for both countries could be real- ised in these universally tough economic times.”
“The UK Australia free trade agreement represents an opportu- nity to build on what are already strong trade ties in the region,” Ms Simson said.
systems are world-class. “We are firmly com- mitted to ensuring these standards are not com-
“We look forward to our two governments arriving at an agree- ment, which will al- low UK consumers to continue enjoying the Australian produce they have come to know and love.”
and diversify Aus- tralia’s trade profile is crucial to supercharge the nation’s COVID-19 economic recovery.
Economists estimate that Australia’s exports to China were worth around $150 billion in 2019.
Australia’s National Farmers’ Federation welcomed the an- nouncement of the trade talks.
NFF president Fiona Simson said the nego- tiations indicate a re-
ELANCO Animal Health Incorporated recently announced that the European Com- mission has granted approval of Elanco’s pending acquisition of Bayer AG’s animal health business.
Animal Health.”
“As the transaction edg-
cine and e-commerce to direct home delivery.
a balance between the farm animal and pet busi- nesses.
The company continues to progress toward a mid- year closing, anticipated August 3, 2020.
“The recent months have only underscored the critical work our farm- ers do in delivering meat, milk, fish and eggs, and the importance of provid- ing pet owners and vet- erinarians with a variety of solutions in multiple channels from telemedi-
The complementary na- ture of this transaction, combining Elanco’s long- standing focus on the vet- erinarian with Bayer’s di- rect-to-consumer exper- tise, will strengthen and accelerate the company’s innovation, portfolio and productivity strategy.
Elanco president and CEO Jeff Simmons said, “Approval from the Eu- ropean Commission is an important milestone to- wards the completion of our acquisition of Bayer
The transaction ad- vances Elanco’s portfolio transformation, creating
Elanco previously an- nounced divestiture agreements in the range of $A175 million to $A204 million of revenue to help advance the need- ed regulatory reviews.
es closer to fruition, we look forward to turning our full attention to de- livering innovation and an expanded portfolio of solutions for farmers, vet- erinarians and pet owners across the globe.
“Combining Bayer Ani- mal Health’s leadership in these areas better posi- tions Elanco to deliver on these needs.”
It will also expand Elanco’s omnichannel approach, substantially diversifying its pet health business into the retail and e-commerce chan- nels as Elanco continues to determine the best methods for reaching pet owners and veterinarians.
The EC’s approval is conditional on several proposed divestitures.
In addition to EC ap- proval, Elanco has re- ceived antitrust clearance for the transaction in China, Colombia, South Africa, Turkey, Ukraine, Vietnam, and provisional clearance in Brazil.
Elanco continues to co- operate with agencies in other jurisdictions.
Further, Elanco fully secured financing early in the first quarter of 2020 to complete the transaction through its completed equity issu- ance and pricing of its Term Loan B, which will fund at deal close.
Elanco president and CEO Jeff Simmons.
The transaction remains subject to additional regulatory approvals and customary closing condi- tions.
Supreme Court overturns Ingham’s feed mill development approval
THE WA Supreme Court has denied poultry producer Ingham’s develop- ment approval for its chicken feed mill northeast of Perth.
on a Brand Highway property owned by White Toro Pty Ltd, however investment company Harvis Capi- tal lodged the Supreme Court application to overturn the panel’s decision.
Justice Allanson handed down his judge- ment on June 11 that the feed mill operation was not a rural indus- try use and therefore could not be approved in the agricultural re- source zone.
The panel approved plans for a $20 million hatchery that could ac- commodate up to 1.5 million day-old chicks at Muckenburra in the Shire of Gingin last year and approved some minor amend- ments to those plans in April.
The proposed devel- opment was to incorpo- rate a poultry farm on Wanneroo Rd in Sina- gra, and Ingham’s said it still planned to relo- cate off that site, which Stockland bought in 2017.
Harvis argued the use was not permitted in the agricultural re- source zone, and ap- proving the develop- ment undermined the viability of its own Brand Highway land- holding, Muchea In- dustrial Park.
The proposed devel- opment was for a 24/7 feed mill to process grain and meal into pellets that would be sent to Ingham’s cus- tomers, and for six large silos.
The Supreme Court decision was raised during a Metro Outer DAP meeting on June 18, with lawyers for Harvis arguing another application for a feed grain mill in the City of Swan should not be classed as rural indus- try use.
Supreme Court Jus- tice Jeremy Allanson granted an application to overturn develop- ment approval for the $24 million feed mill in Muchea, determined by the then-Mid-West/ Wheatbelt Joint De- velopment Assessment Panel last August.
It was concerned the approval would set a precedent that could encourage other de- velopments on less ex- pensive agricultural re- source land, and make it harder to attract buy- ers to the industrial estate.
An Ingham’s spokes- man said the compa- ny’s legal department was reviewing the court’s decision.
Stockland planned to subdivide the 40ha Wanneroo Rd site for 600 to 800 homes, with development expected to take place in about 2022.
The proposed feed mill was to be located
“The delays created by the court process have inevitably impact- ed on Ingham’s plans in WA,” he said.
“We are committed to our strong foundations in WA.
Planning documents lodged with the City of Wanneroo indicated Ingham’s lease for the property was due to expire next December, with an option to ex- tend it by 12 months.
“Our plans to grow with our customers and continue to deliver high-quality Ingham’s chicken products are unchanged.
“We are review- ing our plans, but our exit from Wanneroo remains on foot with work on our new hatch- ery under way.”
A version of this story originally publishedw by Lucy Jarvis of the Wanneroo Times on perthnow.com.au
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National Poultry Newspaper, July 2020 – Page 11