USA's FTC calls for divestments for Boehringer/Sanofi swap deal to proceed

Family-owned German pharma major Boehringer Ingelheim has agreed to divest five types of animal health products  in the USA to settle charges that a proposed asset swap with France’s Sanofi (Euronext: SAN) would harm competition, the US Federal Trade Commission announced on Wednesday.

In November the companies agreed to divestitures to allay European Commission concerns that the deal would harm competition and possibly result in price increases.

Under the proposed swap, Boehringer Ingelheim will acquire Sanofi’s animal care subsidiary, Merial, valued at $13.53 billion, and Sanofi will obtain Boehringer Ingelheim’s consumer health care business unit, valued at $7.98 billion, as well as cash compensation of $5.54 billion.