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Mergers: EC clears acquisition of Meda by Mylan subject to conditions
The European Commission has approved under the EU Merger Regulation the proposed acquisition of Meda AB of Sweden by Mylan N.V. of the Netherlands, subject to conditions. Both companies operate in the pharmaceutical sector.
The decision is conditional upon the divestment of a number of Mylan's or Meda's businesses in Austria, Belgium, Estonia, France, Luxembourg, Ireland, Italy, Norway, Portugal, Spain and the UK. The Commission had concerns that the transaction, as initially notified, would have reduced competition on the markets for several pharmaceutical products. The commitments offered by Mylan address these concerns.
The Commission's investigation
The Commission examined the effects of the proposed transaction on competition in several therapeutic areas, in particular cardio-metabolic, alimentary tract and metabolism, dermatologicals, genito-urinary system and sex hormones, anti-infective agents, antineoplastic and immunomodulating agents, musculoskeletal system, nervous system and respiratory system.
The Commission's investigation found that for the majority of the products no competition concerns arise. However, the Commission identified 15 markets where it had competition concerns, in particular because of the strong position of the two companies and the lack of sufficient alternatives on the market. These markets were:
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Product(s) |
Market(s) |
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Antiarrhythmic agents belonging to the Vaughan Williams Class I-C (propafenone/flecainide) |
Belgium, Estonia, Ireland, Italy, Luxembourg, Spain, Portugal and the UK |
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Amoxicillin |
Norway |
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Diltiazem |
Portugal |
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Megestrol |
Spain |
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Multivitamins without minerals for paediatric use |
Portugal |
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Nabumetone |
UK |
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Povidone-iodine |
France |
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Progestogens |
Austria |
The commitments
To address these concerns, Mylan offered to divest its own or Meda's local businesses in the markets concerned, including the relevant marketing authorisations, customer information and brands, where relevant.
This package of commitments addresses all of the Commission's competition concerns. The Commission's decision to approve the transaction is conditional upon full compliance with the commitments.
The transaction was notified to the Commission on 1 June 2016.
Companies and products
Mylan is a Dutch company, publicly listed in the US that develops, licenses, manufactures, markets and distributes generic, branded generic and specialty pharmaceuticals, mainly on prescription.
Meda is a publicly listed Swedish company that manufactures, markets and distributes both generic and specialty pharmaceuticals, 'over-the-counter' and on prescription.
Merger control rules and procedures
The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the Merger Regulation) and to prevent concentrations that would significantly impede effective competition in the EEA or any substantial part of it.
The vast majority of notified 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). This deadline is extended to 35 working days in case remedies are submitted by the Parties, such as in this case.
More information will be available on the competition website, in the Commission's public case register under the case number M.7975.
Press contacts:
- Ricardo CARDOSO (+32 2 298 01 00)
- Giulia KOMEL (+32 2 296 11 75)
General public inquiries: Europe Direct by phone 00 800 67 89 10 11 or by email
