The new concentration will have the name of AstraZenca and the management will be held equally by both parties.
However this merger has been possible only by divestiture commitments.

The background.

Astra and Zeneca are both active in the research, production and sales of pharmaceutical products. Astra manufacturers also certain medical devices, Zeneca has on its part a major agriculture chemicals and speciality chemicals business.
The new company will be held 46,5% by Astra and 53,5% by Zeneca.

The overlaps between the parties were mainly observed in the anti-hypertension drugs, anaesthetics and anti-asthmatics. For this reason the Commission raised serious doubts with regard to plain and combined beta-blockers and local anaesthetics where the parties' shares attained more than 50%.
The parties had therefore to give commitments to the Commission by granting a viable independent third party with exclusive distribution rights for Tenomin (plain beta blockers from Zeneca) in Sweden and Norway, and the entire interest in dual combined betablockers throughout the EEA from Astra had to be divested to viable third party. For the local anaesthetics, where Astra is the world leader, Zeneca has undertaken to reverse all arrangements relating to Chirocaine, which is a new long acting anaesthetic which Zeneca licensed in last year.
It seems that by these commitments, which will be monitored by the Commission the competitive concerns relating to third parties activities in beta-blockers and local anaesthetics will be removed.

Otherwise, the activities of the pharmaceuticals are largely complementary by nature: Astra is the market leader in gastro-intestinal drugs, whereas Zeneca is not at all active in this field. Zeneca is second in the sector of oncology (cancer), and this is Zeneca's main field, whereas Astra is not at all active in that field. The market of anti-asthmatics was also examined by the Commission: Astra has a number of well-established anti-asthma products, Zeneca had no such activities until the recent development of Accolate, a leukotriene receptor antagonist. This constitutes a new class of products, which are being introduced in Europe. In view of the fact that the companies market shares in most of the EEA are equal the Commission has with the above- mentioned commitments approved the operation.

This article is based and incorporates information provided by the European Commission (Press Releases) and is intended for general information. Specialist advice should be sought before acting on it.