EU to extend Zimmer, Biomet probe, clear Eli Lilly, Novartis deal: sources
Reuters
Published Oct 02, 2014 10:43AM ET
EU to extend Zimmer, Biomet probe, clear Eli Lilly, Novartis deal: sources
By Foo Yun Chee
BRUSSELS (Reuters) - EU antitrust regulators will open an extensive probe into Zimmer Holdings Inc's (N:ZMH) $13.4 billion bid for Biomet Inc, concerned that the creation of the world's second-largest orthopedic products group may hurt competition, three people familiar with the matter said on Thursday.
In contrast, U.S. drugmaker Eli Lilly's (N:LLY) proposed $5.4 billion takeover of Swiss peer Novartis's (VX:NOVN) animal health business triggered no such worries and will be cleared unconditionally, the sources said.
The two deals are among several announced in recent months in the healthcare sector, with firms seeking to gain scale or specialize in certain disease areas.
The European Commission has been reviewing the deal between Zimmer and Biomet [LVBHAB.UL] since August and has set an Oct. 3 deadline for its decision, although this could be extended by 90 working days if it opens a broad investigation.
Zimmer may be forced to offer concessions to remove regulatory concerns unless it can convince the Commission that the deal would not reduce competition.
The acquisition would make Zimmer the second-largest seller of orthopedics products behind Johnson & Johnson (N:JNJ), boosting its presence in the fast-growing sports medicine sector.
Eli Lilly is buying the Novartis unit to strengthen and diversify its Elanco unit. The Commission is also scheduled to decide on that deal by Oct. 3.
Commission spokesman Antoine Colombani and Novartis declined to comment.
(Additional reporting by Caroline Copley in Zurich; Editing by Barbara Lewis and Greg Mahlich)
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