BRUSSELS. May 4: The European Union Commission opened a detailed Investigation Friday into the planned merger of Swiss pharmaceutic cal giants Clba-Geigy AG and Sandoz AG because of fears the companies could dominate EU markets, says AP.

The merged company,' to be called Novartis, would create the second largest global supplier in the pharmaceuticals. animal health and seed sectors. The companies' combined 1995 sales totaled 36 billion Swiss francs 31 billion dollars.

The Commission, the Eki's executive body, said it has particular concerns in sectors in which the companies activities overlap.

Novartis would be twice as large as its nearest competitor in the market for crop protection products, the Commission said.

In pharmaceuticals. EU competition watchdogs are concerned Novartis could have a dominant position in drugs for the treatment of high blood pressure and the bone disease osteoporosis.

Added to these market strengths is Clba and Sandoz's combined strength In research and development.

"Taken together, their R-and-D potential, at least for the area of crop protection, will far exceed all other competitors." the Commission said in a statement.

Commission anti-trust authorities routinely investigate all mergers that could influence EU markets, but most alliances are cleared after a one-month preliminary inquiry.

The commission only opens a detailed font month inquiry If it has competition concerns over the merger. After such an inquiry, the commission can demand changes to the deal or block those Judged to harm fair competition.

The EU has blocked only five deals since 1990.