Novartis/Alcon Deal Cleared by EU Regulators

Swiss drugmaker Novartis received approval from EU regulators on Monday to buy a minority stake in Alcon, making it easier for it to take full control of the U.S. eyecare group. Novartis is buying 52% from Nestle to add to its 25% stake and hopes to secure the remaining shares later. Its offer is dependent on share price moves.

The acquisition, which is conditional on Novartis committing to divest several products in the ophthalmological pharmaceutical and consumer vision care sectors in the EU, will reduce Novartis' dependence on prescription drugs. The company, together with rivals GlaxoSmithKline and Sanofi-Aventis, are expanding into consumer healthcare and other areas to offset the loss of drug patent protection in the coming years.

"In the light of the commitments, the Commission concluded that the transaction would not significantly impede effective competition in the European economic area or any substantial part of it," the European Commission said in a statement.

Alcon is the top global company in opthalmic surgery products and also makes contact lens products and medicines for eye diseases such as glaucoma.