EU Commission clears proposed acquisition of EBEWE SP by Novartis

The European Commission has approved under the European Union Merger Regulation the proposed acquisition of the Austrian generic pharmaceuticals company EBEWE Spezial'Pharma Holding by Swiss drug major Novartis of Switzerland, a pharmaceutical company with both originator and generic activities, the latter through its Sandoz unit.

Novartis announced its intention to acquire the Austrian firm back in May, in a deal which values the latter at 925 million euros ($1.36 billion), in an all cash transaction.

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

Novartis is active in the development, production and distribution of both originator and generic pharmaceutical products and animal health products on a world-wide basis. EBEWE SP is active in the manufacture and distribution of specialty generic pharmaceutical products (with a focus on generic oncology products) and in the contract manufacturing of finished dose pharmaceuticals for other pharmaceutical companies.

The Commission says its examination found that the transaction would not raise competition concerns as significant market shares and overlaps between the parties' activities would only arise in a small number of markets where a sufficient number of credible competitors would remain after the proposed transaction.