The Commerce Commission has received an application from Mylan Inc. seeking clearance to acquire the Established Pharmaceuticals Division of Abbott Laboratories Inc.

Mylan is a US-based global pharmaceutical company that develops, licenses, manufactures, markets and distributes generic, branded generic and specialty pharmaceuticals.

In New Zealand, Mylan operates through its wholly owned subsidiary, Mylan NZ Ltd which distributes imported off-patent medicines as well as a range of prescription and over the counter medicines.

Abbott Laboratories is a global healthcare company that is, amongst other things, involved in the development, manufacture and sale of a broad range of healthcare products including branded generic pharmaceuticals.

Abbott Laboratories operates in New Zealand through its wholly owned subsidiary, Abbott Laboratories NZ Ltd which is primarily involved in marketing and distribution activities.  Abbott Laboratories NZ does not have any manufacturing facilities in New Zealand.

Background

Assessing an application for a merger or acquisition

When considering a proposed merger or acquisition, the Commission must decide whether the competition that is lost in a market when two businesses merge is substantial. We will give clearance to a proposed merger only if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.

A fact sheet explaining how the Commission assesses a merger application is available on the clearances page.