The CCI (Competition Commission of India) on Friday approved the creation of a joint venture for consumer healthcare products by pharmaceutical giants GlaxoSmithKline (GSK) and Pfizer.
In a statement, issued by GSK, showed that in December 2018, the company has made an agreement with Pfizer to combine their consumer health businesses into a new joint venture (JV) with combined sales of around ₹88,900 crore ($12.7 billion).
The CCI, wrote in a tweet that it approves the formation of a JV for consumer healthcare products by GSK and Pfizer.
The notice shared by the various media agencies, stated that the proposed combination involves acquisition of Pfizer’s consumer healthcare business by GSK, and the combination of GSK and Pfizer consumer healthcare business into a global consumer healthcare joint venture under the sole control of GSK.
Provided that, GSK will have a majority controlling equity interest of 68 per cent in the combined consumer healthcare business after the deal, while Pfizer will have a minority non-controlling equity interest of the remaining 32 per cent.
Above all, GSK is active in research, development, manufacturing, and marketing of products which are typically available without prescription for various indications.
Whereas, Pfizer’s consumer healthcare segment develops, manufactures and markets non-prescription medicines, vitamins, and nutritional products.
“The transaction is likely to close in the second half of 2019”, GSK said.
Furthermore, GSK is a British pharmaceutical company, based-out-of London and the Pfizer is a US originated firm with headquarters in New York.