Last April, Johnson & Johnson announced that it would buy Syndicate for $ 21.3 billion.
The deal is significant for Johnson & Johnson. According to the data, Cindis is a Swiss medical equipment company with sales of US $ 3.7 billion in 2010. It mainly manufactures nails, bolts and metal plates for treating fractures. It also produces artificial discs.
Medical device sales is one of Johnson & Johnson's main businesses, and Syndicate occupies half of the trauma medical device market. The acquisition of Syndicate can reduce competition pressure and bring good economic benefits.
The acquisition will not only bring additional earnings of 3 to 5 cents per share and a 70% market share in the global fracture recovery equipment market for Johnson & Johnson, but also provide Johnson & Johnson with advanced manufacturing technology and comprehensive sales.
After the acquisition of Syndicate, Johnson & Johnson's advantages in medical device manufacturing will become more apparent, and its production volume and market share will further increase. This is an important reflection of Johnson & Johnson's globalization strategy, and will strongly promote Johnson & Johnson's expansion into the European market and expand production and sales layout.
In April this year, the European Commission ruled that the transaction would not hinder competition in the relevant markets. However, as a compromise, Johnson & Johnson will sell its trauma care business at the request of the European Union to protect market competition. The European Commission said that the Commission ’s investigation confirmed that after Johnson & Johnson ’s divestiture of its trauma care business, the combined company will continue to face competition from a number of strong rivals, and customers will still have enough suppliers to choose from in all relevant markets.
However, news broke again yesterday that the US authorities have approved the acquisition plan of Johnson & Johnson, saying that the plan meets the requirements of antitrust law.