The Australian Competition and Consumer Commission (ACCC) has announced that it would not oppose Nestlé's $11.85bn deal to acquire Pfizer's infant nutrition business. However, the commission asked Nestlé to license its brand portfolio in the country to an independent purchaser.
This requires Nestlé to sell an exclusive ten year licence for Pfizer Nutrition's infant nutrition S-26/SMA brand portfolio in Australia to an independent purchaser approved by the ACCC. Following the end of the licence period, Nestlé would not be permitted to re-enter the markets with Pfizer's brands for another ten years.
The undertaking has been designed to avoid competition concerns and create an effective, independent and long-term competitor.
Meanwhile, Mexico's antitrust agency has rejected Nestlé's acquisition of Pfizer's infant nutrition business, stating that it would give the company a large share in the local market for infant formula.
Pfizer nutrition, which became part of Pfizer following its acquisition of Wyeth in 2009, sells baby formula and maternal supplements and owns formula brands such as SMA Gold, S-26 Gold and Promil Gold.
