Fair trade regulator CCI has cleared a multi-billion dollar deal between global pharma giants GlaxoSmithKline Plc and Novartis, as it did not find the transaction to be anti-competitive in India. The multi-layered deal involves UK-based GlaxoSmithKline (GSK) acquiring the Swiss major's vaccine business, while the latter would purchase GSK's cancer drugs portfolio.
In a order dated December 12 and made public today, the Competition Commission of India (CCI) said it is of the opinion that the "the proposed combination is not likely to have appreciable adverse effect on competition in India".
The three-part deal involves acquisition of GSK's portfolio of oncology products by Novartis for $16 billion. The deal also involves purchase of the global human vaccines business of Novartis (excluding its influenza vaccines business) by GSK for an estimated amount of $ 7.1 billion.
Besides, both the drung majors have entered into a agreement to form consumer healthcare joint venture in which GSK will own 63.5 per cent stake and Novartis would own the remaining 36.5 per cent holding.