Mexico’s trust-busters are sometimes regarded as a rather toothless bunch. The concentration of markets as disparate as beer, television and telephony appears to prove the thesis. But the problem often lies not with the trust-busters – officially known as the Federal Competition Commission – but with a legal system that makes prevarication into a fine art.
That the commission does have real teeth was shown on Tuesday by its decision to reject Nestlé´s takeover of Pfizer’s baby foods business in Mexico because it would give it too big a share of the nation’s market, hence giving it a free hand to raise prices. Continue reading »
Just a few months ago, the Indian government announced that it would, by the end of the year, start implementing a $5bn plan to provide more than half the country’s 1.2bn people with free access to a wide range of generic drugs.
Delhi this week announced that it plans to increase the number of drugs under price controls from 18 per cent to 30 per cent, meaning an additional 348 medicines will be made more affordable. Continue reading »
The price that Nestlé is paying for Pfizer’s infant nutrition business puts a high value on emerging markets.
The Swiss foods group announced on Monday it would pay the American drugs company $11.85bn for Pfizer Nutrition – the maker of Promil, SMA and S-26 Gold baby food brands, with 85 per cent of its sales in emerging markets.
That’s substantially more than the $10bn mooted last week. But Nestlé was clearly driven into making a bigger offer than it originally intended to see off a rival bid from France’s Danone. Nestlé’s shares were flat on Monday (after going ex-dividend), Pfizer‘s up 1 per cent, and Danone‘s up over 2 per cent. That suggests Nestlé shareholders may be a little concerned about the price – but have no real worries about the EM-focused strategy. Continue reading »