Washington, DC - Following a public comment period, the Federal Trade Commission has approved a final order settling charges that Zimmer Holdings, Inc.’s $13.35 billion acquisition of Biomet, Inc. is anticompetitive.
Under the order, first announced in June 2015, the merged company agreed to divest Zimmer’s U.S. ZUK unicondylar knee implant rights and assets to London-based Smith & Nephew, and Biomet’s U.S. Discovery total elbow implant and Cobalt bone cement rights and assets to Vista, California-based DJO Global, Inc.
The complaint alleged that the merger as originally proposed would have eliminated competition between the companies in markets for unicondylar knee implants, total elbow implants, and bone cement – increasing the likelihood that Zimmer would unilaterally exercise market power in these markets, and resulting in lower levels of quality and service and higher prices.