China Requires One Divestiture for Pfizer / Wyeth Merger

The Anti-Monopoly Bureau of China’s Ministry of Commerce ((MOFCOM)) has given its okay to the merger between Pfizer (NYSE: PFE) and Wyeth (NYSE: WYE). However, MOFCOM will require that Pfizer divest its swine mycoplasmal pneumonia vaccine business. Pfizer has been negotiating with the Anti-Monopoly Bureau on the ruling, implying that it will not be surprised by the ruling, even if it may not agree.

According to the MMLC Group (mmlcgroup.com), the decision from the relatively young Anti-Monopoly Group was short, but very clear in its discussion of administrative law and guidelines. That helps observers in their understanding of how the Anti-Monopoly Group goes about fulfilling its duties. Previous opinions, apparently, left observers wondering how the Group arrived at its conclusions.

What was not particularly clear, following the decision, was how the Wyeth merger would affect Pfizer’s position in the swine pneumonia vaccine sector. Granted, Pfizer is a significant presence in the business, but Wyeth did not appear to increase its strength in the market.

Disclosure: none.

Comments

[a. palmer jr.]

Who do we go talk to about China's monopolies?

2009 Oct 01 08:59 AM