Regulator says transaction will not substantially lessen competition.
The Australian Competition and Consumer Commission has just confirmed it will not oppose the proposed acquisition of Pfizer’s consumer healthcare business in Australia by GlaxoSmithKline.
The ACCC said the proposed deal combines only their over-the-counter businesses, including Panadol, Voltaren and Advil as well as gastrointestinal and cold and flu products.
“After conducting market inquiries and analysing documents and data provided by GSK and Pfizer, the ACCC considers that the transaction will not substantially lessen competition in any market in Australia,” according to the Commission.
Commissioner Roger Featherston said the ACCC had found that Reckitt Benckiser’s Nurofen would compete strongly with the pain medication produced by a combined GSK/Pfizer.
“Also the combined businesses would continue to face competition from the range of generic options available to consumers, which contain identical active ingredients and are usually much cheaper,” he said.
He also noted that Advil’s limited brand recognition and market share in Australia meant it was unlikely to be a strong constraint on the leading brands, Panadol and Nurofen, if the acquisition did not go ahead.
More information in tomorrow’s issue of Travel Daily.
