Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: EC partially approves McKesson’s acquisition of UDG businesses, (Mar 4, 2016)

By Michael Menzhuber, J.D., LL.M.

The European Commission (EC) has approved the part of the proposed acquisition of certain businesses from UDG Healthcare plc of Ireland by McKesson Corporation of the United States that affect the European Economic Area (EEA) outside the U.K., the EC announced today.

McKesson operates in the distribution and delivery of pharmaceuticals and medical equipment. UDG will sell McKesson: (1) its pharmaceuticals wholesale business in the U.K. and Ireland; (2) TCP, a healthcare services provider in Ireland; and (3) MASTA, a travel healthcare business in the UK.

Although the EC concluded that the proposed acquisition affecting the EEA outside the U.K. would raise no competition concerns, it found that the proposed transaction would threaten to significantly affect competition in certain markets in the U.K. Consequently, these aspects of the proposed acquisition are referred to the Competition and Markets Authority for examination under U.K.’s national law.

Doc Kass B.V. The EC has approved under the EU merger regulation the acquisition of DOC Kass B.V. of the Netherlands by DMK Deutsches Milchkontor GmbH of Germany.

DOC Kass is a milk cooperative active in the production of Dutch-type cheese and other types of hard and semi-hard cheese, as well as cream and whey-based products derived from the cheese production process. DMK is a milk cooperative which produces dairy, cheese, and whey-based products.

The EC concluded that the proposed acquisition would raise no competition concerns because the companies’ combined market shares will remain minimal or moderate in the affected markets and customers will continue to have a number of alternatives.

Avril Pole Animal and Tonnies. The EC also has approved under the EU merger regulation the creation of a joint venture between Avril Pole Animal (APA) of France and Tonnies International Holding GmbH of Germany.

APA has activities throughout the oil and protein sectors, including: (1) the slaughtering of pigs; and (2) the production, marketing, and sale of pork products for human and animal consumption. Tonnies is active in: (1) the purchasing and slaughtering of pigs and beef cattle; and (2) the processing, packaging, and sale of meat products.

The joint venture will process, package, and sell at retail level fresh pork and beef products of French origin for human consumption.

The EC concluded that the proposed acquisition would raise no competition concerns because the joint venture’s market position in the EEA will be very limited.

Companies: Avril Pole Animal; DMK Deutsches Milchkontor GmbH; DOC Kass B.V.; Mckesson Corporation; Tonnies International Holding GmbH; UDG Healthcare plc

News: AcquisitionsMergers Antitrust