Proposed Merger between Novartis AG and Alcon Inc

Notifying Parties:

Novartis AG (“Novartis”) and Alcon Inc (“Alcon”)

Notifying Date:

31 March 2010

Summary of transaction:

PART 5
INFORMATION FOR THE CCS PUBLIC REGISTER
(TO BE COMPLETED BY THE APPLICANT(S))

1. The Applicants
This notification is made jointly by the acquirer, Novartis AG (“Novartis”), and the acquired person, Alcon Inc (“Alcon”).

2. Description of the Merger
This notification is in relation to Novartis’ proposed acquisition of a 52.15% stake in Alcon. On 6 April 2008, Novartis entered into a Purchase and Option agreement with Nestlé S.A. (“Nestlé”) whereby it acquired a 24.85% shareholding in Alcon and an option to purchase Nestlé’s remaining 52.15% stake. Novartis exercised the option on 4 January 2010.

The activities of Novartis and Alcon are to a large extent complementary. In particular, Novartis is active in contact lenses whereas Alcon is not, while Alcon is active in intra-ocular lenses whereas Novartis is not. Through the merger, Novartis aims to enhance its global business activities in eye-care which is a dynamic and fast-growing sector in healthcare globally, driven by high needs of an aging population, innovation and emerging markets such as Asia.

3. Relevant good(s) or service(s) involved are in the supply of
(i) Ophthalmological Corticosteroids;
(ii) Miotics and Anti-Glaucoma Preparations;
(iii) Ocular Anti-Allergies, Decongestants, Antiseptics;
(iv) Artificial Tears and Ocular Lubricants;
(v) Preparations for use with contact lenses; and
(vi) Eye Tonics and Eye Vitamins.

Decision:

The proposed acquisition, if carried into effect, will not infringe the section 54 prohibition.

Decision Date:

20 May 2010
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