BRIEF—EC clears the acquisition of joint control of Recipharm

The European Commission has approved, under the EU Merger Regulation, the acquisition of joint control of Recipharm of Sweden by EQT Fund Management of Luxembourg, Zentricity Holding of Sweden and Cajelo Invest of Cyprus.

Recipharm provides contract development and manufacturing organization (CDMO) services, as well as packaging and logistics services to the pharmaceutical industry, globally.

The Commission assessed the overlaps which arise between the companies' product offers. In particular, the Commission assessed the horizontal overlaps with respect to the CDMO services. It also assessed the vertical relationships with respect to the provision of CDMO services upstream and the supply of FDPs and care products downstream, as well as in the distribution of chemicals and cosmetic ingredients upstream and in the provision of CDMO services downstream.

The Commission concluded that the proposed transaction would raise no competition concerns, since there would be no change in market dynamics, given the low market shares of all of the companies concerned in all of the markets under consideration. The transaction was examined under the simplified merger review procedure.