EU Begins "In-Depth" Antitrust Review for JNJ, Synthes
BY LAUREN UZDIENSKI, NOVEMBER 8, 2011
The European Commission announced on Friday that they would begin an "in-depth" antitrust review of JNJ's proposed acquisition of Synthes. Regulators will determine if the $21B transaction reduces competition in the EU. A particular concern is spine, since the combined companies would have about 30% of the market, just behind Medtronic.
EU regulators can require a divestiture of certain assets before the deal can close, or they can block the deal entirely. Bloomberg references the proposed acquisition of Honeywell International by General Electric Co., which the EU blocked in 2001 after it had been approved by U.S. authorities. The EU panel will make a final decision on the Synthes acquisition by March 19, 2012.
In comments to Bloomberg, a J&J spokesperson said the expanded EU review was "customary for transactions of this size and scope", and the company still expects the deal to close in 1H:12.
