Novo Holdings has officially received unconditional approval from the European Union for its $16.5 billion acquisition of U.S. contract drug maker Catalent, a deal that is set to further strengthen its foothold in the pharmaceutical industry. The European Commission concluded that the acquisition would not pose any competition concerns in the European Economic Area (EEA), paving the way for Novo Holdings to finalize the transaction by the end of this year.
In its statement, the European Commission confirmed that the merger would not significantly affect competition in the markets under review. Specifically, it stated that there are sufficient alternative competitors in the market, meaning the deal will not substantially diminish competition in the sector. This ruling follows a thorough investigation into the merger, with regulators indicating that no issues were found in any of the markets examined, which include the 27 EU member states, as well as Iceland, Liechtenstein, and Norway.
Jonathan Levy, Senior Partner at Novo Holdings, expressed his satisfaction with the approval, saying, “With the European Commission’s approval, we are one step closer to delivering the benefits of this transaction.” This acquisition is expected to bolster the capabilities and reach of Novo Holdings, which is the controlling shareholder of Novo Nordisk, the Danish pharmaceutical giant behind the weight-loss drug Wegovy, one of the most successful drugs in its category.
The approval comes at a time when Novo Nordisk is experiencing significant growth due to the soaring sales of Wegovy. The drug, which has made waves in the weight-loss market, has helped make Novo Nordisk Europe’s most valuable company by market capitalization. As Novo Holdings moves forward with the acquisition, it is poised to continue its expansion in the global pharmaceutical sector, leveraging Catalent’s expertise and resources to further accelerate growth.
With the EU’s antitrust green light, Novo Holdings is now closer to completing this high-profile deal, which analysts believe will enhance its strategic position in the industry and open up new opportunities for its portfolio. The closing of the deal is expected by the end of 2024, as the company looks to integrate Catalent’s operations into its broader business strategy.
