CCI approves GSK-Pfizer consumer healthcare JV
24 May 2019
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The Competition Commission Friday said it has approved the formation of a joint venture for consumer healthcare products by pharmaceutical giants GlaxoSmithKline (GSK) and Pfizer.
GSK had, in December 2018, announced an agreement with Pfizer to combine their consumer health businesses into a new joint venture with combined sales of around $12.7 billion (around Rs88,900 crore).
"Approves formation of a JV for consumer healthcare products by GSK and Pfizer," says a tweet by the Competition Commission of India (CCI).
Under the proposed joint venture proposal, GAS will acquire the consumer healthcare business of Pfizer, spinning off the combination of GSK and Pfizer consumer healthcare business into a global consumer healthcare joint venture managed solely by GSK.
After the deal, GSK will have a majority controlling equity of 68 per cent in the combined consumer healthcare business, while Pfizer will have a minority non-controlling equity interest of the remaining 32 per cent.
GSK’s consumer healthcare segment is more consumer-oriented and it is active in research, development, manufacturing, and marketing of products which are typically available without prescription (over-the-counter) for various indications.
Pfizer, on the other hand, develops, manufactures and markets non-prescription medicines, vitamins, and nutritional products under its consumer healthcare segment.
GSK expects the transaction to close in the second half of 2019, subject to approval by its shareholders and certain antitrust authority approvals.
GSK is a British pharmaceutical company headquartered in London, whereas Pfizer is a US-based firm with headquarters in New York.
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