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US/China: Tech merger parties expect lengthy review process overseas

By  |  May 8, 2013

A planned buyout of Life Technologies Corp. by Thermo Fisher Scientific Inc. for a proposed $13.6 billion is facing a financial hourglass as the companies expect a lengthy regulatory review process from international antitrust watchdogs, particularly in China. According to reports, the companies are now expecting that approval of the deal may not come until January 2014; if it is not closed by January 14, 2014, the price of the merger will increase by .6 cents per share every day. Analysts have noted that international regulators, especially the Ministry of Commerce in China, may hold up the deal, as the regulator is notorious for long-lasting review processes. Experts also note that determining potential competitive overlap that may result from the deal is difficult to determine. The deal primarily intends for the California-based Life Technologies to make Thermo, based in Massachusetts, the largest manufacturer of scientific and laboratory equipment in the world.

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