CC grants clearance for GSK to acquire Pfizer’s healthcare

The Commerce Commission has granted clearance for GlaxoSmithKline plc to acquire the consumer healthcare business of Pfizer Inc.

In considering GSK’s application, the Commission’s main focus was whether GSK and Pfizer are close competitors in New Zealand for consumer healthcare products which are medicines and treatments that can be purchased without a prescription. In particular, both GSK and Pfizer supply cold and flu treatments, and systemic pain relief treatments that can be purchased without a prescription in New Zealand.

Chairman Dr Mark Berry said the Commission is satisfied that the acquisition is unlikely to substantially lessen competition in any New Zealand market. “We consider that GSK and Pfizer are not close competitors in the supply of cold and flu treatments, systemic pain relief treatments or any other consumer healthcare products, and that the presence of suppliers of competing products is likely to constrain the merged entity.”

A public version of the written reasons for the decision will be available on the Clearances Register in the near future.

Background
GSK is a global pharmaceuticals company active in the research, development, manufacturing and supply of prescription pharmaceuticals, human vaccines, and consumer healthcare pharmaceuticals that are available without a prescription.

Pfizer is also a global pharmaceuticals company involved in the research, development, manufacturing and supply of medicines. Pfizer’s consumer healthcare business develops, manufactures and supplies non-prescription medicines in the areas of pain management, gastrointestinal health, respiratory, dietary supplements and personal care products.

The Commission will give clearance to a proposed merger if it is satisfied that it would be unlikely to have the effect of substantially lessening competition in any market in New Zealand. Further information explaining how the Commission assesses a merger application is available on our website.

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