EU Commission puts conditions on Baxter's acquisition of Gambro

The European Commission has authorized the proposed $4 billion acquisition of privately-held Swedish dialysis company Gambro by US rival health care company Baxter International (NYSE: BAX; The Pharma Letter December 4, 2012).

However, the clearance is conditional upon the divestment of Baxter's continuous renal replacement therapy (CRRT) business which serves patients suffering from acute kidney failure. The Commission had concerns that the transaction as originally notified would have reduced effective competition on this market. The commitments submitted by Baxter adequately address these concerns.

The Commission's investigation showed that the transaction, as originally notified, would have combined two of the leading suppliers of CRRT equipment and consumables leading to very high market shares in a significant number of European Union member states. The Commission's investigation also showed that the combined entity would not face sufficient competitive constraints from other suppliers and that customers would have faced difficulties to switch to alternative suppliers.