European Commission - Press release
Mergers: Commission approves acquisition of parts of Teva by Procter & Gamble
Brussels, 30 September 2011 - The European Commission has cleared under the EU Merger Regulation the acquisition of important parts of the "over-the-counter" (OTC) business of the pharmaceutical company Teva of Israel by the US company Procter & Gamble (P&G). The Commission concluded that the proposed transaction would not raise competition concerns, because the merged entity would continue to face sufficient competition in the markets concerned.
The Commission's examination of the proposed transaction concentrated on laxatives in the Netherlands and antitussives in Austria, where in some market segments the merged entity will have high market shares. But it concluded that in both areas the combined entity would continue to face sufficient competitive constraints exerted by other companies in the sector.
As a result, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area1 (EEA) or any substantial part of it.
P&G is the US parent company of an international group active in a wide range of consumer products, including consumer health. Teva is an international pharmaceutical company headquartered in Israel. The OTC business of Teva consists of a wide range of products ranging from vitamins to pain relief treatments.
The transaction was notified to the Commission on 26 August 2011.
Merger control rules and procedures
The Commission, in 1989, was given the power to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the Merger Regulation). Its duty is to prevent concentrations that would significantly impede effective competition in the EEA or any substantial part of it.
The vast majority of mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has a total of 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II).
A non-confidential version of the decision will be available at:
The EU plus Norway, Iceland and Liechtenstein