Decision Nº M/04/009 from Competition and Consumer Protection Commission, 2004-03-04

• Jurisdiction: Ireland
• Parties: CSL Animal Health,Pfizer Inc
• Date: 04 March 2004
• Decision Number: M/04/009
• Status: Preliminary investigation (Phase 1)
• Court: Competition and Consumer Protection Commission (Ireland)
• Decision Date: 04 March 2004

Determination of the Competition Authority

Determination No. M/04/009 of the Competition Authority, dated 4th March

2004, under Section 21 of the Competition Act 2002

Notification No. M/04/009 – The acquisition by Pfizer Inc. of CSL Animal

Health, a division of CSL Limited

Introduction

1. On 9th February 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 Pfizer Inc. (“Pfizer”) would acquire CSL Animal

Health, a division of CSL Limited (“CSL”) (“the proposed acquisition”).

The sale agreements were signed on 16th December 2003. The proposed

acquisition is global in nature and would occur by way of purchase of assets in

Australia and New Zealand and shares in the United States.

The Parties

2. Pfizer is a publicly owned, global pharmaceutical company and parent of the

Pfizer group of companies, which develop, manufacture and market prescription

medicines for humans and animals, and consumer healthcare products.

3. CSL Animal Health is owned by CSL, a publicly owned, Australian

pharmaceutical company, with subsidiaries in Australia, New Zealand, Europe

and the United States. CSL operates four business units: CSL Human Health -

manufactures and supplies vaccines for human use, and markets antibiotics and

pharmaceutical products supplied by other manufacturers; JHR Biosciences -

manufactures and supplies cell culture reagents; ZLB Plasma Services - supplies

plasma to a division of CSL Human Health, and manufactures and supplies

plasma-derived products; and CSL Animal Health - develops, manufactures and

markets vaccines for the prevention of disease in livestock and companion

animals, as well as diagnostics for livestock. It has manufacturing facilities in

Australia, New Zealand and the United States.

Commercial Rationale

4. Pfizer outlined the strategic objectives of the proposed acquisition, as follows:

 It will provide Pfizer with a complementary range of products and

significantly increase its sales of vaccines in Australia;

 It will secure Pfizer’s continued control of Spirovac, a cattle reproductive

vaccine project that is licensed to Pfizer by CSL Animal Health; and

 Pfizer will acquire CSL Animal Health’s product development projects.

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