Decision Nº M/04/028 from Competition and Consumer Protection Commission, 2004-05-19

• Jurisdiction: Ireland
• Court: Competition and Consumer Protection Commission (Ireland)
• Parties: Aventis,Abbott
• Date: 19 May 2004
• Status: Preliminary investigation (Phase 1)
• Decision Number: M/04/028
• Decision Date: 19 May 2004

Determination of the Competition Authority

Determination No. M/04/028 of the Competition Authority, dated

19 May 2004, under Section 21 of the Competition Act, 2002

Notification No. M/04/028 – the proposal by Abbott Laboratories

to acquire certain assets of Aventis S.A.

Introduction

1. On 5 May 2004 the Competition Authority, in accordance with Section

18 (1) of the Competition Act, 2002 (“the Act”) was notified, on a

mandatory basis, of a proposal whereby Abbott Laboratories and

several of its affiliates (“Abbott”) would acquire that part of the

business of Aventis S.A. connected with the manufacture, distribution

and sale of pharmaceutical products containing either Trandolapril or a

combination of Trandolapril/Verapamil as the active ingredient (the

“Proposed Transaction”).

2. Under the proposed transaction, Abbott would acquire Aventis’

manufacturing and marketing rights worldwide, except for marketing

rights in Japan. Manufacturing rights (except for the United States)

relating to Aventis’ products containing only Trandolapril as an active

ingredient would be acquired by Abbott Ireland.

3. The proposed transaction is global in nature and was notified to both

the German Federal Cartel Office and the United States Federal Trade

Commission on 1 March 2004. Both bodies cleared the proposed

transaction, on 26 and 31 March 2004, respectively.

The Parties

4. Abbott, headquartered in the United States, is a multinational

corporation engaged in the manufacture and supply of a broad range

of healthcare products and services. Abbott’s Irish activities

encompass pharmaceutical products, medical hospital products,

medical diagnostics and medical nutritionals. Abbott’s Irish

headquarters are based in Sligo and it operates three manufacturing

facilities in Sligo, other plants in Donegal, Cavan and Galway, and a

marketing and sales office in Dublin.

5. Aventis, headquartered in France, also develops and markets

pharmaceutical products. Aventis’ core business comprises activities in

prescription medicines, human vaccines and animal health.

Current relationship of the Parties

6. Aventis manufactures Trandolapril and sells the major part of its

output to Abbott. Abbott in turn uses Trandolapril as an active

ingredient in the manufacture of medication for treatment of

hypertension. This medication is then distributed in part by Abbott,

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