Boehringer, Sanofi ordered to sell assets in South Korea: Yonhap

By Park Sae-jin Posted : November 23, 2016, 14:44 Updated : November 23, 2016, 14:44

[Aju News DB]


South Korea's antitrust watchdog said Wednesday that it ordered global pharmaceutical giants Boehringer Ingelheim International GmbH and Sanofi SA to sell off assets related to animal health care business in the country within six months as their merger will limit market competition.

Germany's Boehringer Ingelheim signed a 25.1 billion US dollar deal in June with Paris-based Sanofi to trade its consumer health care business for the latter's animal-health operation.

The mega-sized business swap was reported to South Korea's Fair Trade Commission (FTC) in the following months as the watchdog reviews every merger involving a foreign company posting more than 20 billion won ($17.1 million) in sales in the country.

Boehringer Ingelheim and Sanofi logged 274.1 billion won and 78 billion won in sales, respectively, in South Korea.

The FTC said that in the local markets of porcine circovirus vaccine and non-steroidal anti-inflammatory drugs for pet dogs, the Boehringer-Sanofi merger will likely increase their monopolistic control and undermine market competition.

Boehringer Ingelheim accounts for 85.1 percent in the porcine vaccine market and Sanofi takes up 4.4 percent, while a combined 66.9 percent of the pet drug market is occupied by the two pharmaceutical titans.

The watchdog ordered them to sell off assets owned by one company such as inventories, distributorship and intellectual properties within six months.

"It is the first time that the FTC makes a regulatory decision on a merger in the animal-health business," said the watchdog. "It will prevent possible damage to South Korean pig farms and pet owners caused by intensified monopolistic control of market."

(Yonhap)
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