Diepgaand onderzoek naar voorgenomen overname van Amerikaanse producent van ziekenhuisapparatuur Guidant door Johnson & Johnson (en)
The European Commission has opened a detailed investigation under the EU Merger Regulation into the planned $ 24 billion (around € 18 billion) acquisition by US healthcare group Johnson & Johnson (J&J) of its competitor Guidant, a US company specialised in cardiovascular medical products. The Commission's initial market investigation has found that the proposed acquisition may create significant competition problems given the two companies' horizontal overlaps in markets for medical devices for the treatment of coronary and peripheral artery diseases and for cardiac surgery. The decision to open an in-depth inquiry does not prejudge the final result of the investigation. The Commission now has 90 working days to take a final decision on whether the concentration would significantly impede effective competition within the Single Market. The Commission is actively co-operating with the US Federal Trade Commission, which is also investigating the merger.
"This takeover involves two companies that are at the forefront of product development in a fast growing part of the medical device industry", commented Competition Commissioner Neelie Kroes. "It is our duty to ensure that any changes to the competitive structure in these markets will not be to the detriment of consumer welfare".
Both J&J and Guidant are active worldwide in the development, production and sale of vascular medical devices. Their products are used by physicians in procedures to treat vascular diseases; both in the heart (coronary arteries) and in other parts of the human body (e.g. carotid, renal, femoral arteries). The firms are direct competitors in respect of a number of products and are both among a limited number of leading companies in Europe and worldwide. The Commission has therefore opened a second phase investigation in order to carry out an in-depth assessment of the proposed transaction. It now has 90 working days to investigate whether the proposed acquisition will significantly lessen effective competition in the European Union and EFTA markets.
J&J is a global healthcare company. It has 109,000 employees worldwide and in 2003 it generated a turnover of around € 37 billion (of which approximately € 7.7 billion was in Europe). Its activities cover three main businesses: consumer goods, pharmaceuticals, and medical devices and diagnostics.
Guidant, headquartered in the US, was founded in 1994 as a spin-off from the pharmaceutical company Eli Lilly. It has around 12,000 employees worldwide and in 2003 it had a turnover of around € 3.3 billion (of which more than € 500 million was in Europe). Guidant's is active in four main areas within the fast-growing cardiovascular medical products business: cardiac rhythm management, interventional cardiology, endovascular devices and cardiac surgery.