Novo Holdings Secures EU Antitrust Approval for $16.5 Billion Acquisition of Catalent

Novo Holdings, the investment arm of Novo Nordisk, has received unconditional approval from the European Union for its $16.5 billion acquisition of U.S.-based contract drug manufacturer Catalent. According to MSN, the European Commission confirmed that it did not identify any potential competition concerns arising from the deal, paving the way for the transaction to proceed without regulatory hurdles in the European Economic Area (EEA).

The deal, first announced by Novo Holdings in February, has now cleared all necessary regulatory scrutiny within the EU. The Commission stated that the merger would not harm competition in any of the markets it reviewed in the EEA, which includes the 27 EU member states as well as Iceland, Liechtenstein, and Norway. “The proposed merger would not raise competition concerns on any of the markets examined in the EEA or on any substantial part of it,” the European Commission said, as reported by Reuters.

Related: Novo Holdings’ $16.5 Billion Catalent Buyout Faces Final Countdown

The EU antitrust body emphasized that there are ample competing alternatives in the market, alleviating any fears of monopolistic behavior following the merger. With this approval, Novo Holdings is one step closer to finalizing its acquisition of Catalent, a company that plays a key role in providing manufacturing services for pharmaceutical firms.

The acquisition marks a significant development for Novo Holdings, the majority owner of Novo Nordisk, which has seen remarkable success with its weight-loss drug Wegovy. According to MSN, the soaring sales of Wegovy have catapulted Novo Nordisk to the top of Europe’s corporate rankings, making it the continent’s most valuable company by market capitalization.

Source: MSN