Synthes/Mathys merger
This article was originally published in The Gray Sheet
Executive Summary
German competition authority, Bundeskartellamt, is expected to issue a ruling on the German portion of Synthes' $1.1 bil. purchase of Mathys' osteosynthesis (trauma, spine, maxillofacial) business by mid-March. The authority's "preliminary view" is that the combination "will create a dominant position for the combined group on the German market for trauma products," Synthes states Feb. 11. The firm notes that market share exceeding 33% is dominant under German law; its market share is the subject of the German investigation. German competitors include J&J, Smith & Nephew and Stryker. Mathys, which retained endoprosthetics (hips/knees) in the deal, also will keep the German operations for the time being. The remainder of the Aug. 13 divestiture closed Feb. 6. Synthes will submit a brief seeking to refute the German authority's preliminary findings by Feb. 24; if that fails, the firm says it will appeal in state court. The combined German operations would represent 5%-10% of Synthes' global sales (1"The Gray Sheet" Aug. 18, 2003, p. 8)...