EU Commission clears acquisition of Meda by Mylan subject to divestments

The European Commission has approved under the EU Merger Regulation the  proposed $7.2 billion acquisition of Sweden’s Meda (OMX: MED A) by Netherlands-incorporated drugmaker Mylan (Nasdaq: MYL), subject to conditions. Both companies operate in the pharmaceutical sector.

The decision is conditional upon the divestment of a number of Mylan's or Meda's businesses in Austria, Belgium, Estonia, France, Luxembourg, Ireland, Italy, Norway, Portugal, Spain and the UK. The Commission had concerns that the transaction, as initially notified, would have reduced competition on the markets for several pharmaceutical products. The commitments offered by Mylan address these concerns.

The Commission's investigation