Competition Commission clears Baxter-Baxalta deal

"The target business has been effectively transferred to the acquirer on June 30, 2015, except in certain 'deferred' jurisdictions, including India, where the transfer of the local target businesses will take place at a later date pursuant to local separation agreements," CCI said citing information provided in the notice.

In India, Baxter operates through two subsidiaries -- Baxter India Pvt and Gambro India Pvt.

Baxter's Indian bioscience business and related assets would be transferred to a newly-created wholly owned subsidiary of Baxter -- Baxalta BioScience (India) Pvt Ltd (Baxalta India). Subsequently, the ownership and control of Baxalta India will be transferred to Baxalta.

CCI observed that the combination, including the eventual India separation, relates to a structural separation of the target business from Baxter into the newly-created company Baxalta.

"... the said structural change is unlikely to result in any impact on competition in any market(s) in India," the regulator said in a recent order.

Prior to implementing the Global Separation pact, Baxalta was a wholly-owned subsidiary of Baxter.

The regulator noted that since Baxalta was a wholly-owned arm of the Baxter and did not carry out any business activity, there was no horizontal overlap or vertical relationship between the business activities of Baxter and Baxalta.

"The Commission is of the opinion that the combination is not likely to have any appreciable adverse effect on competition in India and therefore, the Commission hereby approves the combination," the order said.