FTC OKs Hoechst, Rhone-Poulenc Merger

The Federal Trade Commission said it conditionally approved the proposed merger of Germany’s Hoechst and France’s Rhone-Poulenc to create a huge new pharmaceutical firm, Aventis. The FTC voted 5 to 0 to support a proposed consent decree with Hoechst and Rhone-Poulenc, which will now be issued for public comment. The companies agreed to divest most of Rhone-Poulenc’s interest in Rhodia, a specialty chemicals subsidiary that produces cellulose acetate, and to divest assets associated with Revasc, a drug produced by Rhone-Poulenc. The merged company would have to dispose of all but 5% of its interest in Rhodia to preserve competition in cellulose acetate, a thermoplastic used in tapes, film, tool handles and other products. Hoechst markets Refludan, which is the only direct thrombin inhibitor--a substance used to treat blood clotting--sold in the United States. Rhone-Poulenc, now in the final stages of developing a competitor, Revasc, must divest its rights in the new drug to another firm.