EU: EC approves GlaxoSmithKline’s acquisition of Pfizer’s Consumer Health Business

The European Commission has approved, under the EU Merger Regulation, the acquisition of Pfizer’s Consumer Health Business by GlaxoSmithKline. The decision is conditional upon the global divestment of Pfizer’s topical pain management business carried out under the ThermaCare brand.

GlaxoSmithKline (GSK) and Pfizer’s Consumer Health Business are both manufacturers and suppliers of a variety of consumer healthcare pharmaceuticals, which are typically available to patients without a prescription from a doctor and generally referred to as “over-the-counter” (OTC) pharmaceutical products.

The Commission examined the effects of the proposed transaction on competition in the markets where the activities of the companies overlap.

Based on the investigation, the Commission was concernedthat the acquisition would reduce competition for topical pain management products, possibly resulting in price increases in a number of EEA countries, including Austria, Germany, Ireland, Italy and the Netherlands.

To address these concerns, the companies offered to divest Pfizer’s topical pain management business carried out under the ThermaCare brand globally. This includes all relevant assets that contribute to the current operation or are necessary to ensure the viability and competitiveness thereof.