The Irish Competition and Consumer Protection Commission Approves a Merger Following the Parties’ Submission of a Failing Division Argument (Baxter Healthcare/Fannin Compounding)
e-Competitions | N° 77675
4 Pages Posted: 30 Jan 2016
Date Written: January 2016
The Irish Competition and Consumer Protection Commission (CCPC) has approved a merger under the Irish Competition Act 2002 (as amended) following the parties’ submission of a failing division argument.
The transaction saw Baxter Healthcare Limited (Baxter) seeking to acquire sole control of Fannin Compounding (Fannin), its sole effective competitor in the Irish market for the manufacture and supply of aseptically prepared compounded medicines. Fannin was controlled by DCC plc, an international sales, marketing, distribution and business support services group.
The CCPC’s Determination represents the first application of the so-called “failing firm” defence, as set out in section 9 of the CCPC’s Guidelines for Merger Analysis, since the CCPC’s approval appears to have ultimately hinged on its view that Fannin’s assets were likely to exit the market if the proposed acquisition by Baxter was prohibited.
Keywords: Competition law, antitrust, merger control, failing firm
JEL Classification: K21
Suggested Citation: Suggested Citation