EU clears GSK's acquisition of Novartis vaccines with conditions

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BRUSSELS, Jan 28 (Reuters) - The European Commission said on Wednesday it had approved drugmaker GlaxoSmithKline (Other OTC: GLAXF - news) 's acquisition of Novartis (Xetra: 904278 - news) ' vaccines business, as well as a consumer healthcare joint venture between the two.

The companies agreed last April to trade more than $20 billion of asset in a transaction that includes GSK buying Novartis' vaccines business, Novartis purchasing GSK's cancer drugs, and the two groups tying up in consumer healthcare.

"The decision is conditional upon the divestiture of assets in the vaccines and consumer health businesses," the Commision, which acts as the EU's anti-trust watchdog, said in a statement.

GSK has committed to divesting one meningitis vaccine and granting a worldwide licence of another and offer further concessions in Germany and Italy, the Commission said.

The Commission had concerns that the deal would hurt competition on developing meningitis and diphtheria tetanus vaccines, as well as products to stop smoking and to treat colds and pain.

For the joint venture, the two companies would divest assets in Britain, the Netherlands, Sweden and Turkey. (Reporting by Philip Blenkinsop; editing by Robin Emmott)