EU clears Novartis to buy GSK's oncology business with conditions

BRUSSELS, Jan 28 (Reuters) - The European Commission said on Wednesday it had cleared the acquisition by Novartis of GSK oncology business subject to conditions.

The Commission, the EU's executive arm, said its approval was conditional on the divestment of two of Novartis (Xetra: 904278 - news) 's cancer treatments - LGX818, a B-Raf inhibitor, and MEK162, an MEK inhibitor.

B-Raf inhibitors and MEK inhibitors are therapies that block cell proliferation, responsible for tumour growth and progression, and can be used to treat a number of different cancers.

The Commission said that it had concerns that the transaction would have reduced competition and innovation for these products, but that the commitments address these concerns.

The two companies agreed last April to trade more than $20 billion of assets 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. (Reporting By Philip Blenkinsop)