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U.S. FTC requires divestitures in $13.53 billion Boehringer-Sanofi deal

WASHINGTON (Reuters) – German pharmaceutical firm Boehringer Ingelheim agreed to divest 5 varieties of animal health merchandise to settle expenses that a proposed asset swap with Sanofi would hurt competitors, the U.S. Federal Trade Commission stated on Wednesday.

The proposed asset swap concerned Boehringer Ingelheim’s acquisition of Sanofi’s $13.5 billion animal care subsidiary and Sanofi’s acquiring the Germany firm’s shopper health care enterprise unit, valued at almost $eight billion, plus $5.5 billion in money, the FTC stated in a press release.

Without the divestitures, the proposed swap “would harm competition in the U.S. markets for various vaccines for companion animals (pets) and certain parasite control products for cattle and sheep,” the fee stated.

The sale of the U.S. pet vaccine belongings will happen shortly after the closing of the BI-Sanofi swap transaction, which the corporate anticipates to shut by early 2017, Boehringer spokeswoman advised Reuters in an e-mail.

Sanofi was not instantly obtainable for feedback.

The FTC stated that with out the divestitures the proposed transaction would scale back the variety of suppliers of canine and feline vaccines from 4 to 3. It would mix the 2 prime rabies vaccine suppliers.

It would additionally scale back competitors amongst suppliers of merchandise to stop parasites in cattle and sheep, the FTC stated.

In November the businesses agreed to divestitures to allay European Commission considerations that the deal would hurt competitors and probably outcome in worth hikes.

“The two companies offered to divest a number of Merial’s marketed and pipeline products, including its existing vaccines Circovac, Progressis, Parvovax, Parvovurax and Mucossifa and pharmaceuticals Ketofen, Wellicox, Allevinix, Genixine, Equioxx Injectable and Equioxx Paste,” the EU stated on the time.

(Reporting by Doina Chiacu in Washington and Julie Steenhuysen in Chicago; further reporting by Gaurika Juneja in Bengaluru; Editing by Marguerita Choy and David Gregorio)

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