BD and Bud, the two major medical giant merger case has become
Pharmaceutical Network December 29 News December 27, the Anti-monopoly Bureau of the Ministry of Commerce issued a public notice, decided to conditionally approve the merger of BD and Bud.
In April of this year, BD Medical announced that it will acquire Bud Medical Technologies for $ 24 billion, both of which are globally known medical instruments Giant enterprise , BD's annual sales is to be ranked in the top ten in the world.
With Medtronic after the acquisition of Kehui Johnson and Johnson as the world's medical boss, BD, Bud, the two companies fit together, its total sales will also greatly enhance the medical device giants directly change the rankings.
Among them, in the Chinese market, BD said in a statement that after its acquisition of Bud, its annual revenue in China will reach 1 billion U.S. dollars (most of its revenue comes from BD).
BD acquisition of the medical device called Badger event.
However, as the two companies have overlapping and competing interests in certain product areas, the merger of the two companies also faces the issue of whether antitrust approval is passed.
Earlier, BD had promised to sell some of its businesses for EU antitrust approval, and it also agreed to sell Bud's drainage catheter system to meet the conditions of U.S. regulators. BD said last week that Chinese regulators were the last to complete its acquisition obstacle.
The announcement released by China's Ministry of Commerce on December 27 means that the $ 24 billion deal has cleared the way for antitrust regulation and paved the way.
As early as the 90s of last century, Bard introduced the needle-penetrating biopsy device into the Chinese market and has been leading the market since then, with its market share close to 50% in 2016. Together with BD's market share, it will lead to China Concentration of this market to further improve.
And BD is investing in research and development of a new biopsy instrument A project, which has the disruptive innovation features is to directly challenge the existing technology of Bud .Business fit, Bud will eliminate the BD potential threat to the greatest one, continue to maintain Market leadership and may reduce the power of research and development and commercialization of Project A, reduce investment in innovation and delay the time-to-market of new products, which may adversely affect the technical progress of the market of the needle-penetrating biopsy instrument.
In addition, users of thick-needle biopsy devices are more sticky, the production process is more complicated and the technical content is relatively high, and it takes a long time to get permission for production access. In the short term, it is difficult for new entrants to enter the market to compete in China. Entities form an effective competitive constraint.
After review, MOFCOM concluded that the merger of the two companies may have the effect of excluding and restricting competition in China's market for crude needle biopsy instruments.
After negotiating with the two companies, MOFCOM decided to grant the merger of the two companies additional restrictive conditions.
MOFCOM has requested to strip off BD's soft tissue core needle biopsy worldwide for a limited period of time, including product line, research and development product A, and tangible and intangible assets related to this product line.
The anti-monopoly review by the Ministry of Commerce has been passed in principle, and the merger between BD and Bud will have basically taken shape.
In recent years, BD has made continuous efforts to acquire mergers and acquisitions, successively buying Kang Er Fusheng company, CRISI medical system company, Cellular Research company, Caesarea Medical Electronics (CME) ......
BD's trading territory has expanded again and again, more and more extensive product lines, more and more sales rankings, the acquisition of Bud is in one fell swoop climbed the peak. BD Empire's edge has now, the next goal in turn who is it?
