The European Commission on Friday unconditionally approved a controversial deal in which Novo Holdings, the parent company of Novo Nordisk, one of the largest pharmaceutical companies, would pay $16.5 billion for Catalent, a leading contract drug manufacturer.
By taking this step, the executive arm of the European Union removed a significant obstacle to a deal that has generated debate over the extent to which competition in the pharmaceutical industry may be hindered. The U.S. Federal Trade Commission, however, has yet to issue its own views on the proposed acquisition.
Catalent is an attractive buyout target for Novo Holdings — which owns 77% of the voting shares in the drugmaker — because it is currently a subcontractor that helps manufacture Wegovy, the widely prescribed weight loss drug. But one part of the plan, in particular, has raised questions, because Novo Holdings intends to sell three Catalent facilities to Novo Nordisk for $11 billion.
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