Brussels, 31/01/2001 (Agence Europe) - The European Commission has approved the creation of a joint undertaking between the British company Smith & Nephew plc and the German company Beiersdorf AG on condition that the latter respect the substantial commitments they have made.
The Commission feared that the joint venture, held in equal shares and combining the traditional activities of both groups (namely, certain pharmaceutical products), would hold a dominant position on several national markets. In particular, the move as initially notified would have entailed overlaps in the market for professional healthcare products (immobilisation, casting and bandaging products, plaster of Paris) on the German, Dutch, Belgium, Danish, Italian, Spanish and British markets. The parties have pledged to sell part of their activities in certain countries, certain groups of countries or in the EEA as a whole. The transfers will include goodwill (brand names and other intangible assets), customer contacts, price lists, a transfer of all contracts, all technical know-how, all other intellectual property rights, as well as any personnel and, in some cases, certain manufacturing equipment that may be required by the purchaser. The later should, moreover, be judged "viable" by the Commission, that is, able to exercise significant competition on the markets in question.
The Commission has also examined whether the joint venture would have encouraged Smith & Nephew and Beiersdorf to coordinate their activities in order to put anti-competitive pressure on activities that they will keep outside the new venture. It nonetheless concluded that such a risk did not exist as the markets on which the parent companies are present are clearly distinct.