FTC Wants Additional Info On Zimmer-Biomet Merger
By Jof Enriquez,
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The United States Federal Trade Commission (FTC) is seeking additional information regarding the proposed merger between Warsaw, Ind.-based dental and orthopedic reconstructive device makers Zimmer Holdings and Biomet.
The two companies each received a second request for additional information about Zimmer’s previously announced bid to buy Biomet for $13.4 billion, which it filed back in April. Issued under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act), the request extends the proposed merger’s waiting period by 30 days, according to a joint news release. The waiting period may be extended voluntarily by both companies or ended sooner by the FTC, according to the announcement.
“Zimmer and Biomet will continue to work closely with the FTC as it conducts its review of the proposed transaction. The proposed transaction remains subject to the expiration or termination of the waiting period under the HSR Act, antitrust clearance in certain foreign jurisdictions as well as other customary closing conditions,” the statement said.
European regulators last month requested unspecified additional information from Zimmer regarding its takeover of Biomet. According to an earlier Med Device Online article, the European Commission had deemed Zimmer’s original notification to be lacking in details and gave the company more time beyond the original July 9 deadline to submit a more complete filing. A new deadline has not been set.
Zimmer filed the proposal to purchase Biomet in April for $10.35 billion in cash and $3 billion in common stock, which would form the world’s second-largest orthopedics company behind Johnson & Johnson.
According to the Wall Street Journal, the deal would stop Biomet’s public offering plans, which it filed earlier this year in an effort to pay off debts from its 2007 buyout.
“Competition just got tougher as Zimmer will effectively surpass Stryker to attain the number two spot in orthopedic sales and is now in prime position to compete with market leader Johnson & Johnson,” Tara Shelton, research analyst, Frost & Sullivan Advanced Medical Technologies, said in a Becker’s Spine Review article. “With the deal not closing until early 2015, the effect has yet to be seen in regards to future employment, commodity pricing and innovation.”