The European Commission has approved under the EU Merger Regulation the proposed acquisition of Swiss pharmaceutical company Alcon by Novartis. After the investigation, the Commission has concluded that some competition concerns might arise and therefore make this decision conditional to Novartis' commitment to divest several products in the ophthalmological pharmaceutical and consumer vision care in EEA or in specific Member States.

On 18 June 2010, the Commission received a notification of a proposed concentration pursuant to Merger Regulation by which Novartis AG would acquire sole control of Alcon Inc. by way of purchase of shares.

Further to this communication, the Commission's investigation examined a large number of ophthalmological pharmaceutical markets and consumer vision care markets across the EEA, and found that competition concerns arose in a number of such markets because of the high combined market shares for certain products, the fact that Novartis' and Alcon's products are close competitors and because of the presence of barriers to entry.

The markets in question are: ophthalmological anti-infective, anti-inflammatory/anti-infective combinations, anti-allergics, decongestants, antiseptics, mydriatics and cycloplegics, diagnostic agents, non steroidal anti-inflammatories, injectable miotics, anti-glaucoma products, artificial tears, and multipurpose solutions for contact lenses. Depending on the product in question, competition concerns arose in either a few or a larger number of Member States.

To address the Commission's concerns, Novartis offered to divest a number of businesses across the EEA in the product areas concerned. In view of these commitments, and following a market test, the Commission concluded that the transaction would no longer raise competition concerns.

Novartis and Alcon main activities

• Novartis AG (NYSE:NVS) is a global pharmaceutical company that develops, distributes and markets medical products which include: prescription and over-the-counter medicines (including ophthalmological products), human vaccines and animal health products. Novartis is also active in consumer vision care (non-pharmaceutical eye care) products.
• Alcon Inc (NYSE:ACL) is a global pharmaceutical company with a strong focus on the development, manufacturing, and distribution of ophthalmological pharmaceuticals and surgery equipment as well as consumer vision products.