The European Commission has granted clearance for a three-part transaction between GlaxoSmithKline (GSK) and Novartis.
The proposal includes the acquisition of Novartis's vaccines business (excluding influenza vaccines), the creation of a joint venture in consumer healthcare between the two companies and the divestment to Novartis of GSK's marketed oncology portfolio, related research and development activities and rights to two pipeline AKT inhibitors.
Within the vaccines acquisition, GSK has agreed to sell its meningitis vaccines, Nimenrix and Mencevax (which, sold outside the US, generated annual global sales of £36 million in 2013) on a global basis, and will also divest two small Novartis bivalent vaccines for protection against diphtheria and tetanus in Italy and Germany.
Completion of the three-part transaction is subject to factors outlined in a circular to GSK shareholders in November 2014, and the approval of the European Commission is also subject to certain conditions. Provided these conditions are met, the transaction is set to be completed in the first half of this year.
