Industry Canada

Industry Canada
Competition Bureau Canada

Competition Bureau Canada

December 20, 2006 13:38 ET

Bureau Protects Competition in Baby Healthcare Product: Johnson & Johnson to Sell Zincofax

OTTAWA, ONTARIO--(CCNMatthews - Dec. 20, 2006) - The Competition Bureau filed a consent agreement today with the Competition Tribunal to resolve competition concerns arising from Johnson & Johnson's acquisition of the consumer healthcare business of Pfizer Inc. To address the Bureau's concerns, Johnson & Johnson has agreed to divest the Zincofax brand of diaper rash ointment and related assets.

"The divestiture of this brand ensures that the market for diaper rash ointment will remain competitive," said Robert Lancop, Assistant Deputy Commissioner of Competition. "As a result, consumers will continue to enjoy the benefits of broad product choice and competitive prices."

On June 26, 2006, the parties announced that Johnson & Johnson would acquire the consumer healthcare business of Pfizer Inc.-- which includes brands such as Listerine, Nicorette, Rolaids, Sudafed, Benadryl and Visine -- for US $16.6 billion.

In Canada, while there are 34 distinct product markets for which at least one of these two parties supplies products, there are only eight in which they currently compete. Following a thorough review, the Bureau concluded that the proposed acquisition would likely result in a substantial lessening of competition in one of these product markets - diaper rash ointment. In the other seven, the merger did not raise significant competition concerns.

Over the course of the examination, the Bureau consulted with consumers and competitors, and cooperated with the United States Federal Trade Commission and the Directorate-General for Competition of the European Commission.

The agreement provides that if Johnson & Johnson is unable to sell the Zincofax brand as agreed, a trustee will be appointed to complete the sale.

The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

Court Document

Consent Agreement

Contact Information

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