Cochlear shares rise as ACCC green-lights Oticon deal
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More news: Shares in Cochlear climbed on news that the competition regulator will not oppose its proposed acquisition of cochlear implants business Oticon Medical from Nasdaq-listed Demant.
Cochlear shares were trading 1.46% higher at $334.75 by 11:10am AEDT.
ACCC will not oppose Cochlear's acquisition of Oticon Medical
The news: The Australian Competition and Consumer Commission (ACCC) will not oppose Cochlear's proposed acquisition of cochlear implants business Oticon Medical from its parent company Demant.
The numbers: In 2022, Cochlear notified the ACCC of its proposal to acquire Oticon's bone conduction solutions business and cochlear implants business.
The context: The ACCC and other countries' competition regulators initially identified "significant" competition concerns relating to Cochlear's proposal.
"We were concerned that the original proposed acquisition would lead to higher prices, lower quality or service levels and less innovation in the supply of surgical and non-surgical bone conduction solutions," ACCC commissioner Stephen Ridgeway said.
The parties then revised the transaction, with Nasdaq-listed healthcare group Demant retaining Oticon's bone conduction solutions business and selling only its cochlear implants business.
The ACCC concluded that Oticon has a small market share and does not provide strong competition in the supply of cochlear implants in Australia. It noted that it is "unlikely" that Oticon would have become a stronger competitor in the supply of cochlear implants in the foreseeable future.
The source: ASX announcement
