Novartis AG - s.87B undertaking

On 29 July 2010, the ACCC accepted an undertaking (the Undertaking) from Novartis AG (Novartis) in relation to its proposed acquisition of Alcon Laboratories Inc (Alcon) (the Proposed Acquisition).

Novartis and Alcon were the only suppliers of injectable miotic products in Australia. The ACCC was concerned that, in the absence of the Undertaking, the Proposed Acquisition would have resulted in Novartis being the sole supplier of injectable miotics products in Australia.

The ACCC considered that in the absence of the Undertaking, the Proposed Acquisition would have had the effect or have been likely to have the effect of substantially lessening competition in relation to the market for the supply of injectable miotics products.

The objective of the Undertaking is to address these competition concerns. The Undertaking addresses the ACCC's competition concerns by:

• ensuring that Novartis' Australian injectable miotics assets are sold to Bausch & Lomb Incorporated, an ACCC approved purchaser who will supply the injectable miotics products in Australia effectively;
• creating or strengthening a viable, effective, stand-alone, independent and long term competitor for the supply of injectable miotics products in Australia;
• ensuring that the purchaser of the Australian injectable miotics assets has the necessary assets (including intellectual property and product approvals) to compete effectively with Novartis in the supply of injectable miotics products in Australia; and
• enabling the purchaser of the Australian injectable miotics assets to constrain Novartis in the supply of injectable miotics products in Australia including by increasing the price of products, or decreasing the quality of its service.