This Day On The Street
Continue to site
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

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

NEW YORK ( TheDeal) -- The proposed $13.6 billion acquisition of Life Technologies Corp. (LIFE) by Thermo Fisher Scientific Inc. (TMO - Get Report) 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LIFE $3.56 -95.00%
TMO $143.90 -0.98%
AAPL $93.45 -1.50%
FB $116.38 -0.30%
GOOG $692.50 0.21%


Chart of I:DJI
DOW 17,714.61 -116.15 -0.65%
S&P 500 2,060.71 -15.10 -0.73%
NASDAQ 4,767.4390 -37.8520 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs