EU clears Pfizer's buy of Wyeth with conditions

BRUSSELS, July 17 (Reuters) - European Union antitrust authorities cleared U.S. drugmaker Pfizer's (PFE.N) $68 billion takeover of rival Wyeth WYE.N on Friday subject to conditions, notably the divestment of animal vaccines.

"The Commission had concerns that the transaction, as originally notified, would have raised competition issues in the field of animal health products on a number of national markets," the Commission said in a statement.

"In the light of the commitments offered by Pfizer, the Commission has now concluded that the proposed transaction would not significantly impede effective competition in the EEA or any substantial part of it," it continued.

Analysts have said the acquisition by Pfizer, the world's largest drugmaker, would help the company diversify into vaccines and injectable biologic medicines, seen as more immune than traditional pills to generic products.

The company is expected to see 2011 sales impacted when its blockbuster cholesterol treatment Lipitor will begin to face U.S. generic competition. Pfizer has forecast an earnings boost in the second full year after closing the deal, with cost savings estimated at $4 billion by the third year.

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