This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Deal: Thermo Fisher's Purchase of Life Technologies Runs Through China

Stocks in this article: LIFE TMO

NEW YORK ( TheDeal) -- The proposed $13.6 billion acquisition of Life Technologies Corp. (LIFE) by Thermo Fisher Scientific Inc. (TMO) faces few substantive regulatory hurdles though the companies warn that they may not obtain regulatory approval until January 2014. Analysts says that's because of uncertainty about the timing of overseas antitrust approvals, particularly from China.

The companies announced their plans to merge on April 14 with Thermo Fisher agreeing to pay $76 per share in cash. According to the companies' agreement, if failure to obtain necessary antitrust approval prevents the merger from closing by Jan. 14, 2014, the per share price will increase by 0.6 cents each day afterward.

Life Technologies was little changed at $73.52, having gained 8.2% since April 12. Thermo Fisher was falling 0.5% to $83.51, a 4.8% since a day before the deal was made public.

Since the, Thermo Fisher CEO Marc Casper has declined to get into specifics about the antitrust review, saying only that the company has good lawyers.

"It's obviously an area that we're very well advised," he said shortly after the deal was announced. "We have terrific counsel in this area. And as we look at the process going forward, we would expect to close the transaction early in 2014. And certainly we're not going to speculate on what the governments might think, but we feel good about the process going forward."

During an April 15 conference call, JPMorgan Chase & Co. analyst Tycho Peterson suggested that there might be overlaps in bio-production services and polymerase chain reaction products used to copy DNA, but Casper wouldn't comment on the suggestion.

Another analyst who has examined the deal said both companies' extensive product lines make it difficult to predict exactly how much competitive overlap there is and which products, if any, might be required to be divested. The Federal Trade Commission will review the deal in the U.S.

The biggest uncertainly, the analyst said, is predicting the timing of approvals overseas, particularly from China's Ministry of Commerce, which is prone to lengthy antitrust reviews even when it ultimately imposes no conditions on a merger approval.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs