Walter Eisner • Mon, November 24th, 2014
The European Commission was supposed to make a decision on the ZimmerBiomet deal by March 11, 2015.
On November 18, 2014, Zimmer Holdings Inc. announced the company had agreed to extend the European deadline by a “limited number of days,” and provide the European regulators with additional information.
In October, the Commission opened an “in-depth investigation” into the planned $13.35 billion merger with Biomet, Inc. The Commission said the deal could result in less innovation and higher prices.
Company officials continue to tell analysts that they expect the deal to go through in the first quarter of 2015.
“Deadline extensions are not uncommon in such in-depth investigations. Zimmer has been working closely with the regulatory authorities to facilitate their review of the pending transaction and is encouraged by the substantial progress that has been made to date in connection with the overall regulatory process. Zimmer continues to expect to close the transaction in the first quarter of 2015,” stated the November 18 Zimmer announcement.
Unicompartmental Knees and Shoulder Divestitures?
When the Europeans announced their investigation in October, Wells Fargo analyst, Larry Biegelsen said that, according to his consultant, the review is still likely to be resolved through divestitures. The likely areas of divestiture, according to Biegelsen, are unicompartmental knees and shoulders, given the high combined market share.
