MOFCOM clearance of Bard acquisition
On December 28, Becton, Dickinson and Company (BDX), or BD, received clearance for its Bard (BCR) acquisition form MOFCOM (Ministry of Commerce of the People’s Republic of China), but the approval is contingent on the divestment of BD’s soft tissue core needle biopsy product line. The acquisition is expected to be completed on December 29. BD will divest its soft tissue core needle biopsy product line to Merit Medical, contingent on MOFCOM approval.
On December 28, BDX shares registered gains in pre-market trading but closed the day at a decline of ~1.3%. The Vanguard Growth ETF (VUG) gained ~0.18% on the day. VUG invests ~0.44% of its total holdings in BDX.
Previously, on December 22, BD received FTC (U.S. Federal Trade Commission) clearance for the acquisition of Bard. The approval was contingent on the divestiture of BD’s soft tissue core needle biopsy product line as well as C. R. Bard’s Aspira product line which is a portfolio of tunneled home drainage catheters and accessories. The businesses were sold to Merit Medical Systems, which is an Utah-based supplier of medical devices, for $100 million in November.
According to Vincent A. Forlenza, chairman and CEO of BD, “MOFCOM clearance was the final regulatory approval needed to complete the Bard acquisition. We look forward to closing the transaction and welcoming Bard’s products and associates to the BD family.”
BD is expected to accelerate its position in oncology and surgery space with the acquisition of Bard. With the closing of Bard acquisition, its product portfolio becomes part of a new division, BD Interventional.
Some of the other recently completed major deals in the US medical device industry include the acquisition of St. Jude Medical by Abbott Laboratories (ABT) and Johnson & Johnson’s (JNJ) acquisition of Actelion.