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EU may launch agro probe
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March 20, 2000: 9:57 a.m. ET
AstraZeneca, Novartis could face asset sales to win over European regulators
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LONDON (CNNfn) - European Union officials said Monday they would this week launch an extended competition review of Novartis's plan to create the world's largest agrochemical business by forming a joint venture with Anglo-Swedish drug maker AstraZeneca.
The two health care firms announced plans in December to merge their agrochemical units into a new company called Syngenta, with annual sales of around $8 billion.
The European Commission, the Brussels-based executive arm of the European Union, has completed its routine one-month review of the transaction, but officials told Reuters Monday that they were likely to launch a four-month antitrust investigation into the deal.
A decision to carry out an extended probe usually means that the Commission has serious concerns about a deal and would seek concessions from the participants before authorizing its progress.
The Commission is due to make its official decision Tuesday. By last week the companies had not offered any concessions in respect of areas in which analysts said Syngenta would have a dominant market position.
AstraZeneca declined to comment on the possible probe, while Swiss-based Novartis told Reuters that it still hoped to complete the deal and float Syngenta in the second half of the year.
Novartis is scheduled to hold 61 percent of Syngenta with AstraZeneca holding the balance.
AstraZeneca (AZN) shares were 1.3 percent higher after earlier falling on the news. Novartis shares were 1 percent lower. 
-- from staff and wire reports
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AstraZeneca
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