One orthopedic merger delayed, another announced

Several orthopedic companies with operations in Warsaw are undergoing mergers and/or acquisitions.
Several orthopedic companies with operations in Warsaw are undergoing mergers and/or acquisitions.

WARSAW, Ind. (WANE) – A merger between two medical device manufacturers hit a snag last week with the European Commission and another company with operations in Warsaw announced plans to buyout a Dublin-based company.

Last week, the European Commission said it had inadequate information on the merger between Warsaw-based Zimmer Holdings Inc. and Biomet Inc. A spokesperson for the Commission told Reuters, “The notification that the Commission received was incomplete.”

Zimmer asked the Commission for clearance on June 3 and expected a decision July 9. However, the watchdog group said it will decide on the deal once Zimmer provides the required data, according to Reuters.

Zimmer said in a statement it is working with the Commission and still expects the deal to close in the first quarter of 2015. If approved, the $13.4 billion bid would make the combined company the second largest orthopedic manufacturer in the world behind Johnson and Johnson.

Sunday, Medtronic announced it has agreed to buy Ireland-based Covidien for $42.9 billion in cash and stock.

Medtronic, with operations in Warsaw, expects to close on the deal by the end of 2014 or first quarter of 2015. Medtronic is headquartered in Minneapolis and plans to relocate to Ireland, but maintain a U.S. presence.

It’s unclear how the merger would affect operations in Warsaw. Medtronic makes pacemakers and insulin pumps, among other products.

Medtronic said in a statement it would spend an additional $10 billion over the next decade in investments, acquisitions and research and development in the United States.

 

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