Stryker Corporation (Stryker) and Wright Medical Group N.V. (Wright) both manufacture a range of orthopaedic products for patients requiring implants in their feet, ankles and hands. Following an initial Phase 1 investigation in June, the Competition and Markets Authority (CMA) was concerned that the £4.2 billion merger between the 2 companies would have a negative impact on vulnerable patients in the UK who need ankle replacements.
Stryker has now offered to sell off its global total ankle replacement product and assets to Colfax Corporation (Colfax) who will incorporate this into their subsidiary, DJO Global. The CMA is satisfied that this full structural divestment will address its competition concerns.
The CMA has been co-operating closely with the US Federal Trade Commission (FTC), which has also been reviewing the merger. In August, the CMA announced that it had agreed to extend its consideration of an acceptable divestment package in order to align with the FTC’s timing and ensure that the divestment package would be acceptable in both UK and US jurisdictions.
Joel Bamford, CMA Senior Director of Mergers, said:
Competition in the medical device sector is vital to improve patient treatments, particularly for medical products designed to help vulnerable people suffering from serious degenerative conditions.
The close cooperation with the FTC’s inquiry and early engagement with both companies has enabled Stryker to address our important concerns about this deal and has led to an outcome that works on a global basis.
The full text of the CMA decision will be published shortly on the Stryker/Wright merger inquiry case page.
For media enquiries, contact the CMA press office on 020 3738 6460 or firstname.lastname@example.org.
Last updated 4 November 2020 + show all updates
- 4 November 2020
- November 4, 2020 at 10:53 am by Editor (displayed above)
- November 4, 2020 at 10:53 am by Editor