European Commission approves P&G's acquisition of pharmaceutical company Teva of Israel, says it would not raise competition concerns

Michelle Rivera

DUIVEN, The Netherlands , October 3, 2011 (press release) – The European Commission has cleared under the EU Merger Regulation the acquisition of important parts of the "over-the-counter" (OTC) business of the pharmaceutical company Teva of Israel by the US company Procter & Gamble (P&G). The Commission concluded that the proposed transaction would not raise competition concerns, because the merged entity would continue to face sufficient competition in the markets concerned.

The Commission's examination of the proposed transaction concentrated on laxatives in the Netherlands and antitussives in Austria, where in some market segments the merged entity will have high market shares. But it concluded that in both areas the combined entity would continue to face sufficient competitive constraints exerted by other companies in the sector.

As a result, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

P&G is the US parent company of an international group active in a wide range of consumer products, including consumer health. Teva is an international pharmaceutical company headquartered in Israel. The OTC business of Teva consists of a wide range of products ranging from vitamins to pain relief treatments.

The transaction was notified to the Commission on 26 August 2011.

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