Thermo Fisher awaits regulatory nod for Life Tech acquisition
When Thermo Fisher paid $13.6Bn (€10.1bn) to acquire Life Technologies in April this year the firm said the combination created an “unrivalled industry leader” in the life science industry. However, though the Board approved the purchase in August the company still needs regulatory clearance and the New Zealand Commerce Commission today received its application.
“[Thermo Fisher and Life Technologies] produce a wide range of products for scientific applications,” the regulator said in a statement, noting “areas of product overlap include cell culture, transplant diagnostics, protein and molecular biology.”
The Commission will make a decision by the 21st of this month, whilst a separate clearance application filed with the European Commission last month was resubmitted earlier this week to include a series of commitments to ensure the industry remains competitive as part of the watchdog’s inquiry. The provisional deadline for a decision is on November 25.
In a conference call discussing the company’s Q3 results last month (transcript here), Thermo Fisher CEO Marc Casper said in addition to the Board’s approval of the deal “the integration planning teams are right on schedule” and the firm “continues to work through the regulatory process.”
“The integration planning for Life Technologies is progressing well, and we look forward to the value this transaction will create,” he said, adding “day one planning is nearly complete.”
In 2006, the merger of Thermo Electron Corporation and Fisher Scientific International was approved by the US Federal trade Commission only when the firm agreed to divest its vacuum concentrators business, Genevac.
For the quarter, sales of the company’s Laboratory Products and Services increased 4% to $1.58bn on last year, representing almost half Thermo Fisher’s total revenue for the period.
