By Stephen Nakrosis
The Federal Trade Commission on Tuesday said it will require medical device companies Stryker Corp. and Wright Medical Group N.V. to divest certain of Stryker's assets to preserve competition.
In November of last year, Stryker announced it had agreed to acquire Wright in a deal whose equity value was about $4 billion.
The FTC said the companies would be required to divest Stryker's total ankle replacements and finger joint implant products to remedy concerns the acquisition would harm competition in those markets.
"Under the proposed consent agreement, Stryker and Wright must divest all assets associated with Stryker's total ankle replacements and finger joint implants to DJO Global, allowing it to become an independent, viable, and effective competitor in these markets," the FTC said.
The FTC also said it worked with its counterparts at the U.K. Competition and Markets Authority "to analyze the proposed transaction and proposed remedy."
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(END) Dow Jones Newswires