Ottawa, November 16, 2007 -- The Competition Bureau announced today that it will not challenge Schering-Plough Corporation's acquisition of Organon BioSciences N.V from Akzo Nobel N.V.
"After an extensive review of this transaction, the Bureau concluded that the acquisition is unlikely to result in a substantial lessening or prevention of competition in the animal and human health markets," said Melanie Aitken, Senior Deputy Commissioner of Competition.
Schering-Plough and Organon BioSciences are active in research and development within the human and animal health industry and produce a variety of products in these sectors, such as pharmaceuticals and vaccines. Schering-Plough also produces a number of brand-name products including Coppertone and Dr. Scholl's.
The Bureau examined the effects of the transaction on the human health market, but its analysis concentrated primarily on the animal health sector, where there is greater competitive overlap between the companies. Specifically, the Bureau focussed on the following markets: companion animals (dogs, cats, horses), cattle, swine and poultry.
Overall, while the Bureau found potential competition concerns in some areas, the existence of effective remaining competition resolved the majority of these concerns, except with respect to the fowl cholera vaccine for poultry.
Over the course of its review, the Bureau cooperated with other jurisdictions, including the US Federal Trade Commission (FTC) and the European Commission's Competition Directorate. To satisfy its competition concerns, the FTC ordered the divestiture of three vaccines, one of which also raised competition issues in Canada - Organon BioSciences' fowl cholera vaccine. This remedy resolves any outstanding concerns identified by the Bureau.
The Competition Bureau is an independent law enforcement agency. We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.
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