9 Jul

Zoetis and Abaxis Announce Antitrust Clearance for Merger

WRITTEN BY Mike Benson

Merger agreement

On July 6, Zoetis (ZTS) and Abaxis (ABAX) announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

Zoetis and Abaxis Announce Antitrust Clearance for Merger

On May 16, Zoetis entered a definitive merger agreement with Abaxis where Zoetis will acquire Abaxis for $83.00 per share for a total of ~$2.0 billion in an all-cash deal. The transaction is expected to strengthen the position of Zoetis in veterinary diagnostics. Abaxis has scheduled a special meeting on July 31, 2018, where shareholders will vote on the transaction. If shareholders vote in favor of the deal, Zoetis plans to complete the acquisition shortly after the special meeting. Zoetis plans to fund the purchase through existing cash and new debt.

About Zoetis

Zoetis (ZTS) is a leading animal health company focused on discovering, developing, manufacturing, and commercializing veterinary medicines and vaccines. It also provides diagnostic products, biodevices, genetic tests, and other services. Zoetis’s products are sold in over 100 countries worldwide.

About Abaxis

Abaxis manufactures portable blood analysis systems that are used in medical specialties in human and veterinary patients to provide rapid blood constituent measurements to clinicians. Abaxis provides diagnostic instruments, consumable discs, kits, and cartridges for animal health. The VetScan diagnostic instruments and consumables from Abaxis’s portfolio have a large customer base in North America.

The Health Care Select Sector SPDR ETF (XLV) holds 1.3% of its total investments in Zoetis (ZTS), 2.5% in Eli Lilly (LLY), and 5.0% in Merck (MRK). Eli Lilly operates its animal health business through Elanco, while Merck also has animal health products in its portfolio.

Latest articles

Tortoise Capital Advisors bought 9.5 million Kinder Morgan shares in Q3. That was the biggest addition among the company’s top 10 institutional investors.

Although near-term weakness exists in the cannabis stocks, we expect Cannabis 2.0 products or cannabis-derived products could act as a catalyst.

The US, Saudi Arabia, and Russia are the world’s top three crude oil producers. Let’s take a look at the world’s top oil players by production volumes.

Tesla’s Model Y is gearing up to enter the EV market next summer. Ford heated up this space with its announcement of the Mustang Mach-E launch in late 2020.

Yesterday, Comcast (CMCSA) rose 0.5% and closed at $44.81, with a market capitalization of $203.9 billion. But can you expect a further rise?

Advanced Micro Devices (AMD) is one of the best-performing semiconductor stocks of 2019, beating 100% year-to-date growth.