Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: EC approves acquisition of Bayer’s diabetes care business by Panasonic Healthcare, (Nov 24, 2015)
Organizations Mentioned:Bayer AG | Fortum Oyj | Lietuvos Energija | Panasonic Healthcare Corporation
By Linda O’Brien, J.D., LL.M.
The European Commission (EC) has cleared under the European Union (EU) merger regulation the acquisition of Bayer's diabetes care business of Germany by Panasonic Healthcare of Japan, the EC announced today. Panasonic Healthcare is controlled by global investment firm KKR & Co. L.P. of the United States.
Both companies are active in the supply of self-monitoring blood glucose systems, used for diabetes care, with Bayer currently distributing the systems manufactured by Panasonic Healthcare. With the acquisition, Panasonic Healthcare will take control of the distribution for its own products. The Commission concluded that the proposed acquisition would raise no competition concerns because there are several other channels for competitors of Panasonic Healthcare to reach the market with their products.
Heat and power plant joint control. The EC also announced that it has approved under the EU merger regulation the acquisition of joint control over a combined heat and power plant in Kaunas, Lithuania, by Fortum and Lietuvos Energija. Finnish energy company Fortum is active in the generation and sale of electricity and heat, as well as related services, in the Nordic Countries and other areas of the Baltic region. Lietuvos Energija is a state-controlled energy holding company that is active in the generation and supply of power and heat as well as the trade and distribution of electricity and gas in Lithuania and in the Baltic region.
The Commission concluded that the proposed acquisition would raise no competition concerns because Fortum has a minimal presence in Lithuania in the markets for generation and wholesale of electricity. The market share increment brought about by the transaction is therefore small and will not significantly alter the market structure. Moreover, the joint venture will be a new competitor on the Kaunas district heating market. The transaction was examined under the normal merger review procedure.
Companies: Bayer AG; Panasonic Healthcare Corporation; Fortum Oyj; Lietuvos Energija
News: AcquisitionsMergers Antitrust