Australia to not oppose Nestlé's acquisition of Pfizer's nutrition unit
The Australian Competition and Consumer Commission (ACCC) has announced that it would not oppose Nes…The Australian Competition and Consumer Commission (ACCC) has announced that it would not oppose Nestlé's $11.85bn deal to acquire Pfizer's infant nutrition business. However, the commission asked Nestlé to license its brand portfolio in the country to an independent purchaser.
This court enforceable undertaking requires Nestlé to sell an exclusive ten year licence for Pfizer Nutrition's infant nutrition S-26/SMA brand portfolio in Australia to an independent purchaser to be approved by the ACCC.
This will be followed by a further ten year 'black out' period in which Nestlé would not be permitted to re-enter the markets with Pfizer's brands.
The undertaking has been designed to avoid competition concerns and create an effective, independent and long-term competitor.
Meanwhile, Mexico's antitrust agency has rejected Nestlé's acquisition of Pfizer's infant nutrition business stating that it would give the company a large share in the local market for infant formula, allowing it to increase prices.
Pfizer nutrition, which became part of Pfizer following its acquisition of Wyeth in 2009, sells baby formula and maternal supplements and owns formula brands such as SMA Gold, S-26 Gold and Promil Gold.
