Competition Commission of India (CCI) has cleared the proposed acquisition of consumer healthcare company GlaxoSmithKline Asia Pvt Ltd by two other GlaxoSmithKline group entities.
GlaxoSmithKline Asia Pvt Ltd is into marketing and distribution of oral healthcare products under various brand names such as Sensodyne, Parodontax, Polident and over-the-counter medicines products under the brand names such as Crocin and ENO.
CCI has approved "acquisition of 100% of the equity share capital of GlaxoSmithKline Asia Private by GlaxoSmithKline Consumer Healthcare Overseas and GlaxoSmithKline Consumer Healthcare UK Trading", the regulator said in a tweet on Friday.
The proposed deal involves the transfer of GlaxoSmithKline Asia Pvt Ltd's products and GSK Consumer Brands (indirectly) to GSK CH HoldCo -- a transfer of products within the GSK group alone. This transfer is part of an internal restructuring exercise and no other entity will contribute any products to GSK, according to a notice submitted to the regulator.
GlaxoSmithKline Consumer Healthcare Overseas Ltd (GSKCHOL) and GlaxoSmithKline Consumer Healthcare UK Trading Ltd (GSKCHUKTL) will acquire 100 per cent stake in GlaxoSmithKline Asia Pvt Ltd.
According to the notice, GlaxoSmithKline Consumer Healthcare Holdings Ltd (GSK CH HoldCo) is a 68 per cent owned by GSK and the remaining 32 per cent is with Pfizer. GSKCHOL and GSKCHUKTL are wholly-owned subsidiaries of GSK CH HoldCo.
Prior to the deal, GlaxoSmithKline Asia Pvt Ltd will acquire the trademarks pertaining to 'Iodex' and 'Ostocalcium' brands in India along with the legal, commercial, economic and marketing rights of such brands and other associated assets from GlaxoSmithKline Pharmaceuticals Ltd, as per the notice.
Deals beyond a certain threshold have to be approved by CCI, which keeps a tab on unfair business practices as well as promotes fair competition in the market place.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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