US regulators approve Thermo-Fisher deal

Instrument Business Outlook, Oct 31, 2006

Waltham, MA and Hampton, NH 10/17/06; Washington, DC 10/17/06--The US Federal Trade Commission (FTC) has approved a consent order requiring Fisher Scientific to divest its Genevac business (see IBO 8/31/06) and granted early termination of the waiting period for the pending $12.8 billion merger of the companies. In requiring the divestment of the Genevac business, which sells centrifugal vacuum evaporators (CVEs), the FTC stated that Thermo Electron and Fisher Scientific are the "only two significant suppliers of high-performance CVEs in the United States" and required Thermo to sell the division within five months. Following thirty days of public comment, the FTC will decide whether to make consent final on November 15. According to the FTC, Thermo and Fisher hold respective shares of 30% and 70% of the $10 million US market for CVEs. Fisher and Thermo have made the same divestiture offer to EU regulatory authorities, whose decision is expected November 9.

On Thermo's quarterly conference call President and CEO Marijn E. Dekkers noted that preparations for the merger are going as planned and that the merged company will continue to pursue acquisition activities, particularly in businesses outside of lab equipment and diagnostics, which will be the main focus of merger-related synergies. In fact, both companies have remained active on the acquisition front since the merger announcement as Thermo recently purchased ASYS (see IBO 9/30/06) and Fisher's Oxoid division purchased Dako A/S' clinical microbiology product lines in September. (For the companies' third quarter results, see page 12.)