Boston Scientific's proposed acquisition of BTG receives US FTC clearance

Boston Scientific's proposed £3.3-billion ($4 billion) acquisition of BTG has received clearance from the US Federal Trade Commission, the companies announced Wednesday. The go-ahead for the deal comes shortly after Boston Scientific agreed to sell its portfolio of drug-loadable microsphere and bland embolic bead products to Varian for $90 million.

Last November, Boston Scientific announced an agreement to acquire BTG for £8.40 ($10.21) per share in cash, expanding its peripheral interventions portfolio with minimally-invasive treatments for cancers and vascular conditions. However, the companies said in February that the FTC had requested further information on the deal, specifically on the beads businesses of both firms.

On Wednesday, the FTC explained that Boston Scientific's acquisition of BTG would harm consumers in the US market for drug eluting beads (DEBs), as the companies are the two largest suppliers of products in the country. The regulator said that in order to gain clearance, Boston Scientific must divest its DEB business, as well as its bland bead product line, to Varian within 10 days of closing the purchase of BTG.

The FTC's clearance follows clearances from other antitrust authorities, including the Federal Competition Authority of Austria on August 2, and from the National Authority for Markets and Competition in Spain in late July, the companies said. The acquisition, which is conditional on receiving a court sanction at a hearing on August 15, is expected to become effective on August 19.

For related analysis, see The Wider View: Sirtex who? Varian’s failed merger bid a distant memory as it moves on with new IO consorts.