ú9bn Glaxo bid gets the green flag

Glaxo’s ú9bn bid for Wellcome is believed to have been cleared by the European Commission.

The decision, taken by the EC’s merger task force, is the first legal hoop the controversial bid has to jump through. A merger referral would have delayed and possibly killed the takeover.

But it is understood that the committee met in Brussels on Tuesday to agree to accept Glaxo’s proposals. The deal still faces anti-trust clearance in the US.

It is understood that the EC will ask Glaxo to licence existing or future anti-migraine drugs, including Imigran, to a third party to ensure continuing competition in the market. Wellcome is preparing a similar drug 311C which sparked fears that Glaxo would hold a dominant position in the market.