China’s Ministry of Commerce said the approval is conditioned on the sale of St. Jude’s small vessel closure device business; the companies would have 20 days from the close of their deal to execute the sale of the vascular closure unit and related assets, according to an online translation of the announcement.
Abbott and St. Jude have already arranged to sell off those assets and others to Terumo (TYO:4543) for approximately $1 billion. That deal calls for St. Jude to deal its Angio-Seal and Femoseal vascular closure assets, including a manufacturing plant in Puerto Rico; Abbott is due to divest the Vado steerable sheath it bought with the acquisition of Kalila Medical earlier this year.
The Chinese regulators said their review of that transaction found that the Terumo deal would fix their anti-trust concerns. Earlier this week, their U.S. counterparts agreed when the Federal Trade Commission likewise conditionally approved the deal.
Earlier this month, anti-trust regulators in India cleared the $25 billion tie-up, weeks after regulators in Europe cleared the deal.
Abbott has said it plans to pay for the deal with cash on hand and a $15.1 billion debt offering. The Abbott Park, Ill.-based healthcare giant floated $2.85 billion in 2.35% senior notes due in 2019; $2.85 billion in 2.9% notes due 2021; $1.5 billion in 3.4% notes due 2023; $3.0 billion in 3.75% notes due 2026; $1.65 billion in 4.75% notes due 2036; and $3.25 billion in 4.9% notes due 2046.
If the deal doesn’t go through by the end of next year, Abbott would have to redeem the 2019, 2023, 2026, 2036 and 2046 notes, but not the 2021 notes at a 101% premium plus interest, according to a regulatory filing.
The post Abbott’s $25B St. Jude Medical tie-up approved in China appeared first on MassDevice.
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