CCP opens second phase review on the proposed acquisition of vaccines business (excluding influenza vaccines business except in china) of Novartis AG by Glaxosmithkline PLC.

Islamabad,  13-11-2014

The Competition Commission of Pakistan (CCP) in concluding the first phase review of the pre-merger application dated 19 September, 2014 for the proposed acquisition by GlaxoSmithKline Plc., ("GSK") of the vaccines business (excluding Influenza business except in China) from Novartis AG ("Novartis"), has ordered to open a second phase review. Both GSK and Novartis operate in the same relevant product market of meningococcal vaccines through their subsidiaries in Pakistan, where the preliminary examination of the pre-merger application revealed that GSK holds a dominant position, and with the proposed acquisition, GSK will strengthen its dominant position, which may pose competition concerns in the market of meningococcal vaccines in Pakistan.

CCP has opened a second phase review of the proposed acquisition under Section 31(1)(d)(ii) of the Competition Act, 2010 in order to determine whether or not the said acquisition is likely to substantially lessen competition by creating or strengthening a dominant position in the relevant product market in Pakistan.