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EU vets

Sandoz, Ciba-Geigy

merger

BRUSSELS: The European Commission said on Friday it had started a routine inquiry into the proposed merger of Swiss pharmaceuticals giants Sandoz AG and Ciba-Geigy AG.

It said in a statement published in the European Union's Official Journal the deal apparently fell under EU merger rules prohibiting creation or strengthening of dominant positions.

The EU's competition watchdog has about a month to clear the operation, which will create the world's second biggest drugs company, or start an in-depth four-month investigation if it is worried about its effect in the 15-nation bloc.

Sandoz and Ciba-Geigy announced last month they were merging into a new company called Novartis, which would be second to Britain's Glaxo Wellcome with 4.4 percent of the world market.

The Commission has competence in concentrations involving firms with an aggregate worldwide turnover of five billion European currency units ($6.2 billion) and an EU turnover of 250 million Ecus ($312 million) each. This applies to the two companies based in the Swiss city of Basle although Switzerland is not an EU member.

The Commission invited interested parties to comment.

The operation is also being examined by the Swiss competition authorities.-Reuter