Brussels, 27/05/2005 (Agence Europe) - The European Commission has conditionally cleared under the EU Merger Regulation the proposed acquisition of Hexal, a German producer of generic medicines, and 67.7% of its US sister company Eon Labs, by Swiss pharmaceuticals company Novartis, in a deal which creates the largest European producer of generics. The Commission's clearance is subject to a number of conditions intended to safeguard competition in areas where the transaction raised competition concerns. To remedy these concerns, Novartis has committed itself to sell off specific pharmaceutical products in Poland (Calcihexal), Germany (Diclac) and Denmark (Apurin, along possibly with Allopurinol if requested by the purchaser). Competition Commissioner Neelie Kroes commented: ”Effective competition through generic medicines is important for health care systems across Europe, and ensuring continued competition from generics is vital to keeping downward pressure on health care costs.” The Federal Trade Commission (FTC) in the United States will also be ruling on this deal, following an FTC request for further information.