Antitrust regulators in the European Union may be OK with the pending, $5.8 billion union of Alere, but Abbott still wants out of the deal.
The Chicago-area healthcare giant, which posted its 4th-quarter results earlier today, sued last month to stop the merger. Today the EU regulators on the European Commission approved the merger, subject to Abbott selling off some Alere’s Epoc and Triage tests and its BNP reagents business. Abbott also agreed to sell plants in Ottawa and San Diego to mollify the commission.
“Doctors and patients worldwide rely on fast and accurate tests to detect and monitor medical conditions. Today’s decision ensures that they will continue to benefit from choice and competitive prices in the fast developing market for small and portable test analyzers,” commissioner Margrethe Vestager said in prepared remarks.
In the complaint filed Dec. 7 with the Delaware Court of Chancery seeking to halt the merger, Abbott cited a “substantial loss in Alere’s value,” saying that since signing the agreement a year ago, Alere “suffered a series of damaging business developments.”
“Alere is no longer the company Abbott agreed to buy 10 months ago. These numerous negative developments are unprecedented and are not isolated incidents brought on by chance. We have attempted to secure details and information to assess these issues for months, and Alere has blocked every attempt. This damage to Alere’s business can only be the result of a systemic failure of internal controls, which combined with the lack of transparency, led us to filing this complaint,” Abbott external communications VP Scott Stoffel said at the time.
Full Content: +Mass Device
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