Plan by Roche to take over Chinese Jiangshan vitamin C business abandoned

After a warning from the Bundeskartellamt Roche Holding AG, Basle, Switzerland (“Roche”) have abandoned their project to acquire the vitamin C business of Jiangsu Jiangshan Pharmaceutical Ltd., Jingjiang, People’s Republic of China (“Jiangshan”).

The President of the Bundeskartellamt, Dr Ulf Böge, stated: “The merger project would have resulted in the world leading manufacturer Roche having a single firm dominance in the market for synthetically manufactured vitamin C. With the combination of its financial power and access to the Chinese manufacturer’s significant technological resources and capacities Roche would have a scope for action which could no longer be controlled by its rivals in the domestic market for vitamin C which is characterised by high barriers to market entry.  If the concern had not withdrawn from its plans the Bundeskartellamt would have had to serve a prohibition order as already announced.”

With vitamin C the merger control proceedings covered a product which is in demand by a whole range of manufacturers from the food, feedstuffs, pharmaceuticals and cosmetics industries.