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OFT consults on proposed undertakings in IVAX acquisition of 3M's distribution business for certain asthma products

27 November 2003

The OFT is consulting on proposed undertakings following the completed acquisition by IVAX International GmbH of 3M Company's distribution business for certain asthma products.

On 20 October the OFT announced that the merger would be referred to the Competition Commission unless IVAX gave undertakings to remedy competition concerns, arising as a result of the deal, in the UK market for the supply of salbutamol (hydrofluoroalkane (HFA) propelled) breath actuated inhalers (see PN 132/03).

IVAX has now offered to give undertakings not to increase the price of its salbutamol (HFA) breath actuated inhalers until an effective substitute salbutamol (HFA) breath actuated inhaler, not manufactured or distributed by IVAX, is available in the UK, and the OFT is minded to accept these undertakings.

However, before reaching any final decision, interested parties are invited to give views to the OFT on the proposed undertakings.

Download proposed undertakings (pdf 65 kb)

Representations should be made in writing by 18 December 2003 to Samina Khan, Mergers Branch, Office of Fair Trading, Fleetbank House, 2-6 Salisbury Square London EC4Y 8JX (telephone: 020 7211 3000, email samina.khan@oft.gsi.gov.uk ).

NOTES

1. The Enterprise Act 2002 empowers the OFT to refer to the CC completed or anticipated mergers for investigation and report which create or enhance a 25 per cent share of supply in the UK (or a substantial part thereof) or where the UK turnover associated with the enterprise being acquired is over £70m, and where the OFT believes that it is or may be the case that the merger has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the UK.

2.  The OFT may, instead of making a reference to the Competition Commission, accept undertakings from an appropriate party to take such action as it considers appropriate to remedy, mitigate or prevent the substantial lessening of competition or any adverse effect which has or may have resulted from it (or may be expected to result from it).

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