GSK-Novartis deal wins US trade regulator approval

Glaxosmithkline is on track to complete its complex three-way £11bn deal with Swiss pharmaceutical peer Novartis next year after US regulators approved the first two parts of the transaction.

The arrangement, announced in April, proposed GSK taking over Novartis' vaccines business, Novartis buying GSK's cancer drugs, and the two companies working together in a new consumer-healthcare joint venture.

The US Federal Trade Commission (FTC) has now given the green light for GSK's acquisition of Novartis' vaccines business (which excludes its influenza vaccines) as well as the proposed creation of the consumer-healthcare tie-up.

Novartis had to sell its US nicotine patch unit, Habitrol, in order to gain the support of the FTC.

The closing of the three-part deal now remains subject to certain other conditions, including all remaining antitrust clearances and GSK shareholder approval, with a vote scheduled for 18 December.

"Subject to these conditions, the transaction is expected to complete during the first half of 2015," GSK said.