Step One -- European Competition Commission Process: Merial to Sanofi; Sanofi's Intervet Call Option -- 10 Days to Comment

Here is the full-text of the 10 day notice, released this morning in Brussels, soliciting commentary:

Prior notification of a concentration
(Case COMP/M.5614 — Sanofi-Aventis/Merial)
Candidate case for simplified procedure
(Text with EEA relevance)
(2009/C 194/06)

1. On 11 August 2009, the Commission received a notification of a proposed concentration pursuant to Article 4 of Council Regulation (EC) No 139/2004 ( 1 ) by which the undertaking Sanofi-Aventis, France, acquires within the meaning of Article 3(1)(b) of the Council Regulation control of the whole of the undertaking Merial, USA, by way of purchase of shares.

2. The business activities of the undertakings concerned are:

— for Sanofi-Aventis: research, development, manufacturing and marketing of human pharmaceuticals and vaccines,

— for Merial: research, development, manufacture and delivery of innovative animal pharmaceuticals and vaccines.

3. On preliminary examination, the Commission finds that the notified transaction could fall within the scope of Regulation (EC) No 139/2004. However, the final decision on this point is reserved. Pursuant to the Commission Notice on a simplified procedure for treatment of certain concentrations under Council Regulation (EC) No 139/2004 ( 2 ) it should be noted that this case is a candidate for treatment under the procedure set out in the Notice.

4. The Commission invites interested third parties to submit their possible observations on the proposed operation to the Commission.

[Editor's Note -- found elsewhere on the ECC site, is this:

. . . .In addition to the Merial agreement, Merck, sanofi-aventis and Schering-Plough announced the signing of a call option agreement. Under the terms of the call option agreement, following the closing of the Merck/Schering-Plough merger, sanofi-aventis would have an option to combine the Intervet/Schering-Plough Animal Health business with Merial to form an animal health joint venture that would be owned equally by the new Merck and sanofi-aventis. . . .]

Observations must reach the Commission not later than 10 days following the date of this publication. Observations can be sent to the Commission by fax (+32 22964301 or 22967244) or by post, under reference number COMP/M.5614 — Sanofi-Aventis/Merial, to the following address:

European Commission
Directorate-General for Competition
Merger Registry
J-70
1049 Bruxelles/Brussel
BELGIQUE/BELGIËEN

The above is only step one -- still missing is the larger "Step Two" filing, and notice -- Merck/Schering-Plough, proper.

Do let the Commission's Directorate-General know what you think, here -- one and all (especially those of you who, according to published reports, felt "marginalized" -- in the bidding process). [I wanted to get this right out but now I am off cooking up a graphic, for this item -- back shortly, with it in tow. Other duties call; these graphics will suffice.]