Pfizer’s Hospira buyout approved in Australia and Canada
Pfizer’s $17 billion buyout of Hospira has been approved in Canada and Australia after the countries’ competition bureaus approved the deal.
The approval from Canada’s Competition Bureau, on August 14, comes ten days after Pfizer said the European Commission had also approved the deal.
The Australian Competition and Consumer Commission approved the deal on August 13 and found no need for remedies from Pfizer.
As was the case in the EU, Pfizer committed to divest certain assets in Canada to ensure the deal was approved.
Under the agreement, Pfizer will sell the Canadian assets related to three of its drugs, as well as the assets directed to a drug from Hospira’s portfolio.
Pfizer will sell its injectable cytarabine products, used to treat types of blood cancer, its injectable epirubicin products, which help to treat a variety of cancerous tumours, and its oral tablet methotrexate, used to treat certain cancers as well as psoriasis and arthritis.
The company will also sell Hospira’s pipeline injectable voriconazole product, which treats fungal infections.
Canada’s bureau said that in its review of the proposed transaction it concluded that the deal, had Pfizer not agreed to the asset sales, would likely have resulted in “a substantial lessening or prevention of competition” for the supply of those four sets of products in the country.
Jeanne Pratt, senior deputy commissioner in the mergers and monopolistic practices branch of the bureau, said: “Pfizer worked cooperatively with the bureau in order to resolve the bureau’s competition concerns.
“I am satisfied that this agreement will ensure that competition is preserved in the supply of these important therapies.”
Ian Read, chief executive of Pfizer, said: “We are pleased that the Canadian Competition Bureau concluded its review of the transaction and approved the pending combination of Pfizer and Hospira.
“We continue to work cooperatively with the regulatory agencies to obtain the requisite approvals, and continue to expect the transaction to close in the second half of 2015.”
Completion of the transaction remains subject to governmental and regulatory approvals in certain other jurisdictions and other closing conditions, which are usual and customary.