J.&J. Offers Concessions to Win Approval for Synthes Deal

LONDON — Johnson & Johnson has submitted concessions to the European Union in an effort to complete its $21.3 billion takeover of the Swiss-American medical tools maker Synthes.
The announcement comes after European authorities had expressed concerns that the deal might reduce competition in the medical devices industry. Regulators are now expected to rule on the proposed acquisition by April 26, extending the previous deadline of April 12.To appease regulators, the Synthes trauma unit, which manufactures orthopedic implants and instruments, could possibly be sold, according to Jan Wald, senior medical device analyst at Morgan Keegan in Tennessee.Johnson & Johnson, based in New Brunswick, N.J., already operates a similar trauma business. Mr. Wald added that Johnson & Johnson was more focused on acquiring Synthes’s spine division, which complements the American company’s existing operations.
“Synthes’s trauma business would be a plus, but it’s not a deal killer,” Mr. Wald said. “Johnson & Johnson are more concerned about bringing in the spine business.”Johnson & Johnson declined to comment on potential concessions.
In April, Johnson & Johnson agreed to buy Synthes with a cash-and-stock offer of 159 Swiss francs ($174.65) a share.
The boards of both companies have approved the transaction. A group of shareholders, led by the Synthes founder and chairman, Hansjörg Wyss, has pledged to vote in support of the deal. Mr. Wyss controls 47 percent of Synthes, a stake that will be worth slightly more than $10 billion when the deal closes.A Johnson & Johnson representative, Lorie Gawreluk, said the company continued to work with antitrust authorities and still hoped the transaction would be completed in the first half of 2012.