Zimmer Holdings (NYSE: ZMH) announced that it has proposed a remedy package to the European Commission (the “EC”) to facilitate the EC’s approval of Zimmer’s proposed acquisition of Biomet.
Zimmer has been working closely with the EC to develop a mutually-acceptable solution to address the discrete concerns identified by the EC in its preliminary assessment of the proposed acquisition of Biomet. The remedy package proposed by Zimmer includes the divestiture of one unicompartmental knee brand and one elbow brand in the European Economic Area (“EEA”) and one total knee brand in two EEA countries. The EC will market-test the proposed remedy package in the coming days. In parallel, the EC has “stopped the clock” on its review of the proposed merger.
Zimmer continues to be encouraged by the substantial progress that has been made to date in connection with the overall regulatory process and expects to close the transaction in the first quarter of 2015.
The transaction also remains subject to the expiration or termination of the applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, approval from the Japan Fair Trade Commission, as well as other customary closing conditions.
Under the terms of the merger agreement announced on April 24, 2014, Zimmer will acquire Biomet in a cash and stock transaction valued at approximately $13.35 billion, including the assumption of net debt.
