Sanofi controlled by the Elf-Aquitaine group, and Synthélabo controlled by the l'Oréal group, are two French companies. Both of them are operating in health and chemistry sectors. The Sanofi beauty sector will be transferred to the new entity, named Sanofi-Synthélabo. This new entity will be in sixth place in the pharmaceutical sector in Europe and 19th worlwide.
In the pharmaceutical sector, this new joint venture does not create or strengthen an individual or collective dominant position. Important competitors such as Hoechst or Marion Roussel and new entrants are present on the market, and moreover, development of each company's market share is irregular.
The beauty sector has no dominant position even if the market share of the new entity and that of the l'Oréal parent company have been added.
For these reasons, the European Commission declared the operation compatible with the common market and the European Economical Area.
This article is based and incorporates information provided by the European Commission (Press releases) and is intended for general information. Specialist advice should be sought before acting on it.