Print“Commission Vice President in charge of competition policy Joaquín Almunia said that Thermo's divestures would "preserve competition and innovation in the life sciences industry.”
Thermo Fisher Scientific is selling three business lines to GE in a $1.1 billion deal intended to expedite European Commission approval for its $13.6 billion acquisition of Life Technologies.
Thermo's cell culture, gene modulation, and magnetic beads businesses will become part of GE Healthcare’s Life Sciences division. Together, the businesses were expected to generate revenue of about $250 million in 2013, according to Thermo.
The European Commission said in November 2013 that given the overlap in Thermo and Life's lab instruments and consumables businesses, the initial plans for the merger would have significantly reduced competition in those areas. The commission also expressed concerns that the market shares, track records, intellectual property rights, technical know-how, and commercial relationships of Thermo and Life combined would constitute too significant a barrier to entry for competition.
In order to address the concerns, Thermo Fisher will divest the part of its HyClone business selling media and sera for cell culture; its gene modulation business in Lafayette, Colorado; and its polymer-based magnetic beads business. It also committed to a 2-year transitional agreement to supply magnetic beads to the purchaser, GE.
Commission Vice President in charge of competition policy Joaquín Almunia said that Thermo's divestures would "preserve competition and innovation in the life sciences industry."
Although GE's acquisition remains subject to additional regulatory approvals, the deal is expected to close in early 2014.
January 08, 2014
http://www.burrillreport.com/article-thermo_fisher_sells_assets_to_ge_healthcare_for_1_1b.html
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