EU clears J&J purchase of Pfizer unit

The acquisition would strengthen Johnson & Johnson's position as the world's largest supplier of consumer health-care and over-the-counter medicines.

The Commission said the acquisition did raise some concerns and its investigation focused on the product areas where the activities of J&J and PCH overlap. PCH is Pfizer's worldwide business division active in over-the-counter pharmaceuticals and personal care products.

The Commission found that the proposed transaction would give rise to competition concerns in three product areas: topical dermatological antifungals in Italy, daily-use mouthwash in Greece and nicotine replacement therapy products in the European Economic Area.

However, J&J has offered to divest the overlapping activities in Italy and in Greece and, in whole or in part, its global nicotine patch manufacturing business. In the light of these commitments, the Commission has concluded that the proposed transaction would not significantly impede effective competition.

“The transaction proposes a major restructuring of the over-the-counter pharmaceutical and personal care product segment in Europe. The remedies offered by J&J fully address the concerns we had identified, including those concerning nicotine patches. I am thus confident that these markets will remain competitive,” said EU competition commissioner Neelie Kroes.