EC clears planned acquisition of Icelandic generic drugmaker Actavis by Deutsche Bank

The European Commission yesterday approved the proposed acquisition by Deutsche Bank of control over the Icelandic generic pharmaceutical company Actavis under the EU Merger Regulation. The Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

Actavis and owner Bjorgolfur Thor Bjorgolfsson agreed a refinancing deal with lenders, led by Deutsche Bank, in July to cut debts worth billions of euros and restructure the tycoon's personal debts. The company then said that the refinancing gives Actavis a capital structure that positions it strongly for the future and provides it with the flexibility to continue to grow, especially in southern Europe, Japan, the Middle East and northern Africa, and increase market penetration in current geographies.

Another key priority will be the entry into the segment of biological products (biosimilars), a product group which requires a strong financial position due to the high development cost. Combined with the potential for strong operational performance and the recent appointment of Claudio Albrecht as chief executive, the refinancing transaction puts Actavis in a strong position to achieve its growth targets, the Iceland firm stated.