SNY Sanofi

BRUSSELS—The European Union on Thursday greenlighted plans by Sanofi SA to exchange its animal-health business for most of Boehringer Ingelheim GmbH's consumer health-care business, on the condition the companies divest a number of businesses selling primarily over-the-counter products.

The European Commission, the bloc's antitrust regulator, said either Sanofi or Boehringer would have to shed local businesses selling products such as cough or headache medicine in France, Ireland, Greece, Central Europe and the Baltics.

France's Sanofi and Germany's Boehringer first announced the deal in December and have said they expect to close by the end of this year.

As part of the asset swap, Boehringer will also pay Paris-based Sanofi €4.7 billion ($5.26 billion). Sanofi says its animal-health business has an enterprise value of €11.4 billion and Boehringer's consumer health-care business has an enterprise value of €6.7 billion. The deal doesn't include Boehringer's consumer health-care business in China.

The EU said it initially had concerns the transaction would lead to higher prices and less choice for consumers in the markets mentioned, but that the remedies offered addressed the issues.

"The investigation found no competition concerns for the majority of the products. However, the commission identified a few markets where the two companies have very strong brands and with a lack of alternatives to the companies' products," the EU said in a statement.

Write to Natalia Drozdiak at natalia.drozdiak@wsj.com

(END) Dow Jones Newswires

August 04, 2016 11:15 ET (15:15 GMT)

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