Virbac Group - proposed acquisition of the Fort Dodge livestock business of Pfizer Inc
Type of assessment
Informal Review
Reference
39636
Acquirer(s)
Virbac Group
Target(s)
Fort Dodge livestock business of Pfizer Inc
Industry
Pharamaceuticals
Summary
On 30 September 2009, the ACCC announced its decision not to oppose Pfizer Inc's proposed merger with Wyeth Corp, subject to a section 87B undertaking (the Undertaking). The Undertaking addressed competition concerns identified by the ACCC in a number of animal health markets. Under the Undertaking, Pfizer was required to divest the Fort Dodge livestock business in Australia to a purchaser approved by the ACCC.
Pfizer proposed to sell the Fort Dodge livestock business to Virbac Group and therefore lodged a proposed purchaser notice seeking the ACCC's approval of Virbac as the proposed purchaser of the Fort Dodge livestock business pursuant to the Undertaking (proposed acquisition).
Outcome of assessment
Not opposed
Total review days *
47
Commenced public review
18th November 2009
Date completed
27th January 2010
Market definition
The ACCC considered Virbac's suitability as a proposed purchaser according to the criteria established in clause 7.3(b) of the Undertaking and pursuant to s50 of the Trade Practies Act 1974. The following markets were considered relevant to the proposed acquisition:
- the national market for the supply of endectocides for worm control in cattle; and
- the national market for the supply of endoparasiticides and endectocides for worm control in sheep.
Competition analysis
The ACCC considered that there was no reason for it to withhold approval from Virbac as an approved purchaser of the Fort Dodge livestock business, in accordance with the criteria set out in clause 7.3(b) of the Undertaking. In addition, the ACCC concluded that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets. In forming this view, the ACCC had regard to the following factors:
- Virbac's products would face strong competition from generic alternatives; and
- the proposed acquisition was unlikely to result in the removal of a significant source of competitive tension from the relevant markets.
Undertakings
Pfizer s87B Undertaking 30th September 2009 D10+66649.pdf (2.4 MB)
Review timeline
Date
Event
18th November 2009
ACCC commenced review under the Merger Review Process Guidelines.
27th November 2009
Closing date for submissions from interested parties.
9th December 2009
Former proposed date for announcement of ACCC's findings, indicative decision date amended at Pfizer's request.
14th January 2010
ACCC commenced review of proposed purchaser notice submitted by Pfizer.
15th January 2010
Former proposed date for announcement of ACCC's findings, indicative decision date amended due to receipt of proposed purchaser notice.
21st January 2010
Closing date for submissions from interested parties in relation to proposed purchaser criteria.
27th January 2010
ACCC announced it would not oppose the proposed acquisition.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
