European Commission Launches Investigation into AstraZeneca-Novartis Merger

The European Commission has today launched an investigation into the proposed merger of AstraZeneca, an Anglo-Swedish drugs group, and Novartis, a Swiss life sciences company, in a move aimed at creating the world's first dedicated global agribusiness. The investigation centers on concerns that the joint venture, Syngenta, would dominate the fungicide market and hold significant market positions in herbicides and insecticides. The Commission is expected to review the deal over the next few months, with a full inquiry into Syngenta's portfolio scheduled to conclude on August 4.

Key Takeaways:

• The European Commission has launched an investigation into the proposed merger of AstraZeneca and Novartis, citing concerns over the joint venture's dominance in the fungicide market.
• The joint venture, Syngenta, had pro-forma sales of $6.9 billion in 1998 and is expected to become the world's first dedicated global agribusiness.
• The Commission's inquiry will examine the joint venture's portfolio and is expected to take until August 4 to complete.
• Analysts have expressed concerns that the deal could lead to a dominant position in certain product markets.
• The merger was announced in December and has been expected to be reviewed by the Commission since then.

Statistics:

• The joint venture, Syngenta, had pro-forma sales of $6.9 billion in 1998.
• The merger is expected to create the world's first dedicated global agribusiness.
• The Commission has launched a full inquiry into Syngenta's portfolio, which is scheduled to conclude on August 4.
• The deal has been under review by the Commission since December.

Sources:

• [European Commission]
• [The Financial Times]