EU Approves Sigma Merger with Conditions
The EU stated that its concern for price increases in certain laboratory chemical markets was due to the companies’ leading positions in Europe, their broad product portfolios and their “efficient channels.” The EU not-ed that the investigation of the companies’ product offerings for bioscience products and for raw materials for pharmaceutical manufacturing did not raise similar concerns as their products were complimentary and other major vendors exist.
Brussels, Belgium 6/15/15; Darmstadt, Germany 6/15/15; St. Louis, MO 6/15/15—Merck KGaA announced that the EU has granted clearance of its $17.0 billion purchase of Sigma-Aldrich (see IBO 9/30/14) but will re-quire Sigma to make certain chemical divestments, citing the risk of price increases. Sigma will divest its manufacturing assets in Seelze, Germany, where it produces most of its solvents and inorganics sold in Europe. Sigma will also divest the Fluka, Riedel-de-Haën and Hydranal brands of solvents and inorganics. In addition, Sigma has agreed to provide a temporary license in the European Economic Area to the Sigma-Aldrich brand of solvents and inorganics, with Sigma providing customer information to create a temporary channel. The EU stated that the companies modified their initial remedies package to satisfy the concerns of the European Commission. Merck KGaA also received approvals from China and Japan for the acquisition. The transaction is expected to close mid-year.
