PARIS — Sanofi-Aventis SA and Merck & Co.’s decision to scrap a planned joint venture in veterinary products may spur more deals in the industry, including possible sales of the animal health units owned by Novartis AG and Bayer AG, analysts said.
Sanofi and Merck may seek acquisitions in the industry, and may look to the Novartis and Bayer units, said Alistair Campbell, an analyst at Berenberg Bank in London. In the United States, Pfizer Inc. is reviewing its businesses, including the veterinary unit.
Novartis and Bayer were among potential bidders for the assets that Sanofi and Merck planned to sell to satisfy antitrust requirements for the joint venture, two people with knowledge of the matter said in October. Now that those sales won’t happen, Novartis and Bayer may decide to sell their veterinary units because they’re not big enough, analysts said.
Merck and Sanofi abandoned plans to combine their animal health businesses “because of the increasing complexity of implementing the proposed transaction,’’ the companies said in a joint statement yesterday. They cited “the nature and extent of the anticipated divestitures and the length of time necessary for the worldwide regulatory review process.’’
The companies had hired Morgan Stanley to help sell assets valued at $1 billion to get antitrust approval for the deal, the people with knowledge of the matter said in October.
The merger of Merck’s Intervet unit and Sanofi’s Merial operation would have created a company with $5.5 billion of annual sales, making it the largest animal health company. Both companies said they’re committed to operating the businesses.
Jean-Marc Podvin, a spokesman for Sanofi, didn’t immediately respond to a request for comment. “We are pleased with the animal health business and what it brings to the table,’’ Steven Campanini, a spokesman for New Jersey-based Merck, said in a telephone interview.
