South Africa's Competition Commission ruled that the purchase of Fine Chemicals Corp did not contravene its antitrust regulations, but that Aspen would have to provide assurances that FCC would continue to supply its existing clients - some of which are in competition with Aspen - and seek new customers.
FCC has been one of Aspen's major suppliers, and the Commission had been concerned because it is the only supplier for a number of controlled substances, including the narcotic analgesic codeine phosphate.
A report on Moneyweb noted that several FCC customers had voiced their concern that Aspen would seek to advantage itself through its ownership of FCC, for example by forcing them to pay higher prices for ingredients or cutting them out of the market altogether. This could lead to price hikes for consumers, they suggested.
The Commission recognised the concerns, but instead of blocking the acquisition, decided to attach conditions to the deal, which completed on 13 July.
In addition to its commitments to supplying customers, Aspen has also had to guarantee that FCC will adhere to its current pricing scheme, unless it can provide legitimate justification for increases to the Commission.
In a statement, Aspen said that it will use FCC as a platform for the production of the APIs used in the antiretrovirals to treat HIV/AIDS, noting: "The way is now clear for Aspen to engage with potential technology partners in this regard."
Meanwhile, FCC said it expects to report revenue of R170 million (€22.6m) and earnings before interest, taxes, depreciation and amortisation (EBITDA) of R30 million for the 12 months prior to completion of the transaction. The existing business is materially influenced by the relative strength of the rand, approximately 50 per cent of revenue being derived from exports.