J&J-Guidant Deal Cleared in Europe

The companies will shed some product lines.
Author:
Publish date:

The European Commission has cleared

Johnson & Johnson's

(JNJ) - Get Report

proposed acquisition of medical-device maker

Guidant

(GDT)

, the companies said Thursday.

European regulators will require J&J to shed its Cordis steerable guidewires business and the Guidant Endovascular Solutions business both in Europe. Guidant said it's making organizational changes as part of its effort to unload the Endovascular Solutions unit.

The companies also said they'll address the overlap in their endoscopic vessel-harvesting product lines. J&J's proposed acquisition is still being reviewed by the Federal Trade Commission in the U.S. A decision is expected in October.

Guidant has issued

three recalls of faulty heart devices in recent months, which led some Wall Street observers to question whether J&J would try to rework the terms of the deal. The Guidant acquisition pact is valued at $25.4 billion, or $76 a share.

In its press release Thursday, J&J said it "continues to work with Guidant to understand and evaluate the impacts of the various field actions announced by Guidant during the past several months."

Guidant shares fell 90 cents to $70.75 in early trading. J&J shares rose 30 cents to $62.55.