Clearance for Pfizer on Wyeth deal

Pfizer

When Pfizer announced its acquisition of Wyeth back in January, it paved the way for the merger of the largest pharmaceutical company in the history of the sector.

Mergers and Acquisitions (M&A) have actually become something of a staple for the pharma industry in recent months - with this one signifying the biggest. Many analysts are now beginning to speculate that the rate of M&A is likely to continue in the next 12 months, becoming a key attribute of the changing industry.

As such, since its announcement, the Pfizer-Wyeth merger - due to be completed in the fourth quarter of this year - has had to bare witness to much speculation that the pending acquisition has given rise to antitrust issues and breeches of competition laws.

Today though Pfizer has reported that it has received clearance from both the US Federal Trade Commission (FTC) and the Canadian Competition Bureau (CCB) for issues that had remained.

The move means that, while the FTC has now terminated the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 with respect to the Wyeth acquisition, the CCB has also given their approval on the forthcoming merger.

The decision by both agencies means that Pfizer has now satisfied the regulatory approval requirements under the merger agreement to complete the acquisition.

According to Jeffrey Kindler, chairman and chief executive of Pfizer, "We [Pfizer] now look forward to combining the two companies so that we can achieve meaningful results for patients, customers and the communities we serve, as well as for our shareholders."

The decision also means that Pfizer will be required to divest certain animal health assets in the US and Canada, respectively, to Boehringer Ingelheim, as previously announced. The CCB decision also includes Pfizer's commitment to amend an existing distribution agreement in Canada.

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