The Antitrust Week In Review
Here are some of the developments in antitrust news this past week that we found interesting and are following.
Google Faces New Round of Antitrust Charges in Europe. When it comes to Europe’s lengthy investigations into Google, Margrethe Vestager, the European Union’s competition chief, is hoping that the third time’s a charm. Ms. Vestager announced on Thursday a new round of antitrust charges against the company — the third set since early 2015 — claiming that some of the company’s advertising products had restricted consumer choice. The efforts are part of her continuing push to rein in Google’s activities in the European Union, where the Silicon Valley company has captured roughly 90 percent of the region’s online search market.
Antitrust ruling on big mergers expected soon. A U.S. Justice Department decision on the proposed mergers of Aetna Inc. and Humana Inc., and Anthem Inc. and Cigna Corp., could come as soon as this week. Hartford, Connecticut-based Aetna met earlier this month with Justice Department officials to make its case for its $37 billion merger with Louisville, Kentucky-based rival Humana, just two weeks after a similar meeting involving the $54 billion merger of Indianapolis-based Anthem and Bloomfield, Connecticut-based Cigna, Bloomberg reported.
Teva says Allergan deal to close ‘any time’, expects U.S. antitrust clearance. Teva Pharmaceutical Industries Ltd said on Wednesday it expected its $40 billion deal to buy Allergan Plc’s generics business to close “at any time,” even as the companies extended the deadline for completing the transaction to October to allow more time for the U.S. antitrust review. The deal was announced more than a year ago and had been expected to wrap up last month, but it has taken longer as the companies have arranged sales of more drugs than anticipated to clear the antitrust regulators. The deal closing is contingent on clearance from the U.S. Federal Trade Commission, the antitrust regulator reviewing the deal, which the companies said they expect at any time.
Bayer Raises Takeover Bid for Monsanto. The German industrial giant Bayer raised its all-cash takeover bid for Monsanto on Thursday, turning up the heat in its pursuit of the American agricultural company. In a news release, Bayer said that it had increased its offer to $125 a share from $122 a share. The German company also proposed a $1.5 billion breakup fee if a merger of the two companies ran afoul of government regulators — a concession to concerns that a transaction could raise opposition from antitrust officials. Though the two companies operate on separate sides of the agricultural business, regulators may closely scrutinize a merger that could put additional pricing pressure on farmers.
Tagged in: Antitrust Enforcement, Antitrust Litigation, International Competition Issues,