Antitrust Law Daily Wrap Up, WORTH NOTING—Other Antitrust and Trade Regulation developments, (Mar 10, 2016)

A periodic roundup of other items of interest to the Antitrust and Trade Regulation community:

ACQUISITIONS & MERGERS NEWS: The European Commission (EC) has approved the proposed acquisition of Allergan plc’s generics business by Teva Pharmaceutical Industries Ltd. Following a market investigation, the EC found various competition concerns regarding numerous marketed generic molecules and generic molecules in the development pipeline in 24 European Economic Area countries, due to horizontal overlaps or vertical relationships. In addition, the EC determined that in Iceland, Ireland, and the U.K., the remaining players would not be able to compete effectively with the merged entity. The EC therefore conditioned approval of the proposed transaction on the divestment of: each of the marketed molecules and molecules in the development pipeline that gave rise to the competition concerns; Teva’s portfolio of marketed molecules and molecules in the development pipeline in Iceland; and the majority of Allergan Generics’ marketed generics activities and generics activities in the development pipeline in Ireland and the U.K.

ACQUISITIONS & MERGERS NEWS: The EC approved the proposed acquisition of the Rhiag Group of Italy by LKQ Corp of the United States. Both companies manufacture and distribute automotive spare parts for the independent aftermarket sector, the EC announced. The transaction did not raise competition concerns, according to the EC, due to the parties’ moderate combined market shares in the manufacturing of auto spare parts. In addition, the two companies’ activities, with regard to spare part distribution, were deemed “largely complementary” because they are not active in the same member states of the European Union. The EC also noted that there are various other players that are active in manufacturing and distributing auto spare parts.

ACQUISITIONS & MERGERS NEWS: Margrethe Vestager, EC Commissioner in charge of competition policy, presented remarks today at the Studienvereinigung Kartellrecht’s International Forum on EU Antitrust Rules, held in Brussels. Although confident that the EC’s merger control system works well, Vestager noted that there can be improvements. In particular, she disclosed her desire to “build on our experience with mergers, so that transactions that are unlikely to do much harm to competition can go through even more quickly and simply than they do now.” Vestager cautioned, however, that while simplification is important, “it mustn’t come at the expense of our ability to protect competition. And the costs of closing any gaps in our ability to deal with important transactions mustn’t outweigh the benefits.”

ANTITRUST NEWS: The U.K. Competition and Markets Authority (CMA) published its summary of provisional decision on remedies today concerning its energy market investigation. The “comprehensive and wide-ranging package of remedies,” according to the CMA’s statement, will address the problems hindering competition in the energy markets, including the extent to which consumers are disengaged, shortcomings in regulation, and the ability to deliver change across the industry.

LAW FIRM NEWS: Hogan Lovells has welcomed Lesley Morphet and Nkonzo Hlatshwayo as partners in the firm’s Competition team. Both attorneys join the firm’s Johannesburg office from Webber Wentzel. Morphet joins as Head of the Competition team and brings with her more than 25 years of experience. Her competition practice includes advising clients on merger notifications, prohibited practices, leniency applications, exemption applications, and compliance across Africa. Hlatshwayo, who previously served at the South African Competition Commission and Swaziland Competition Commission, focuses on general competition work, including transactional/mergers and acquisitions work in South Africa and across numerous African jurisdictions.

Attorneys: Lesley Morphet and Nkonzo Hlatshwayo (Hogan Lovells).

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