Zimmer Holdings, Inc. has made a second proposal to the European Commission (EC) to get the regulators to approve their planned acquisition of Biomet, Inc.
The company announced on February 10, 2015, that the latest “revised remedy package” is generally consistent with the first divestiture proposal submitted to the EC in December. The original proposal called for the divestiture of one unicompartmental knee brand and one elbow brand in Europe and the divestiture of one total knee brand in two European Union (EU) countries.
The EC had effectively stopped the clock on its review of the deal on December 2, 2014 after some concerns. That’s when Zimmer offered the remedy package. The EC “market tested” the initial proposal and had some concerns. Hence, the revised proposal.
The company also said the formal deadline for the EC’s decision has been moved to May 26, 2015. However, the company still expects to close the deal before the end of March 2015. The company still needs approval from the U.S. Federal Trade Commission and Japan’s Fair Trade Commission to close the deal.
Zimmer noted in its announcement that it is “pleased with and encouraged by the progress to date with the overall regulatory process.”
