UK watchdog says Cochlear's Oticon Medical deal could harm market (updated)

Cochlear

20/04/2023 10:20

(Adds Demant response)
       April 20 (Reuters) - Britain's Competition and Markets
Authority said on Thursday that Australian hearing device maker
Cochlear's purchase of Demant's hearing implants business could
hurt competition and mean higher prices for the National Health
Service. 
    The proposed 850 million Danish crown ($125 million) deal
between two of the biggest players in Britain's hearing implant
market could lead to worse outcomes for patients and higher
prices for the state-funded NHS, the CMA said in a statement. 
    Cochlear  COH.AX  said it disagreed with the CMA's findings,
adding that the group along with Denmark's Demant  DEMANT.CO 
would "engage constructively" to address its concerns.
    Demant said that irrespective of the outcome of ongoing
investigations by competition authorities, it remained committed
to its decision to "discontinue" its Oticon Medical as it had
already concluded it had no prospect of becoming a global leader
in hearing implants within a reasonable timeframe.
    The deal is also under investigation by the European Union
(EU) and Australian antitrust regulators, and is pending
clearance under French Foreign Direct Investment rules.
    The CMA has set a June 5 deadline for its in-depth probe of
the deal, which Cochlear said was no longer expected to close
before June 30.
    The regulator said the combined entity would leave only a
single supplier of passive bone conductive solution (BCS)
products in Britain and would dominate the supply of BCS
products in the country, with a share well above 90%.
($1 = 6.7929 Danish crowns)  

 (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Rashmi Aich and Alexander Smith)
 ((abyjose.koilparambil@thomsonreuters.com; +919986528692;))