EU approves Lilly’s acquisition of Novartis Animal Health

The European Commission has approved Lilly's mooted takeover of Novartis Animal Health, ruling that the merger of the two veterinary giants does not raise competition concerns.

This decision follows an investigation into the potential impact of the transaction on the markets for endoparasiticides, heartworm parasiticides, otitis externa treatments, and oral/pre-mix antimicrobials for swine and rabbits across a number of EU member states.

According to the commission, the takeover – which will bolster Lilly's capabilities in the production of the above in multiple countries – will not grant the US giant a monopoly in the affected markets.

Switzerland-based Novartis Animal Health specialises in the discovery, development, production and sale of products for the prevention and treatment of diseases in companion animals, livestock and farmed fish.

Lilly announced plans to acquire the company in August, with the transaction valued at $5.4 billion (3.36 billion pounds).

This follows parent firm Novartis' agreement in April to pay $14.5 billion for GlaxoSmithKline's oncology product line, alongside a sale of its vaccine business for $7.1 billion to the same drugmaker.