European Commission clears Abbott’s acquisition of Alere

The European Commission has given Abbott Laboratories the green light to acquire diagnostic test maker Alere.

The clearance, which was announced yesterday, January 25, is subject to the divestment of some of Alere’s operations.

In order to address the competition concerns identified by the commission, Abbott must fully divest Alere’s global Epoc and Triage businesses.

Additionally, the company must divest Alere’s B-type natriuretic peptide (BNP) reagents business, which commercialises a BNP test with manufacturing company Danaher.

Namal Nawana, CEO and president of Alere, said: “This regulatory clearance marks a significant milestone toward the completion of our transaction with Abbott and we remain highly confident that the merger will close according to the terms of the agreement.”

Alere and Abbott agreed in February last year that Abbott will acquire the company for $5.8 billion.

However, the companies are in dispute over whether the acquisition will move forward.

As LSIPR reported in December last year, Abbott filed suit to terminate the purchase of Alere.

Abbott’s decision came from Alere’s alleged failure to file financial statements because of revenue recognition problems in foreign countries.

Scott Stoffel, a spokesman for Abbott, said: “Alere is no longer the company Abbott agreed to buy ten months ago.”

As reported by Bloomberg, Alere stated in response: “As Abbott well knows, none of the issues it has raised provides it with any grounds to avoid closing the merger.”

It added: “Alere will take all actions necessary to protect its shareholders and to compel Abbott to complete the transaction in accordance with its terms.”