UK watchdog says Cochlear's Oticon takeover can hurt competition (updated)

Cochlear

20/04/2023 08:29

(Adds Cochlear response, details of CMA findings)
       April 20 (Reuters) - A UK regulator said on Thursday
that Australian hearing device maker Cochlear's  COH.AX 
acquisition of Demant's  DEMANT.CO  hearing implants unit could
hurt competition and lead to high prices for the National Health
Service. 
    The 850 million Danish crowns ($125.1 million) merger
between two of the biggest players in the UK's hearing implant
sector could lead to worse outcomes for the patients, who rely
on these life-changing hearing implants and higher prices for
the state-owned NHS, the Competition and Markets Authority (CMA)
said in a statement. 
    Responding to the CMA findings, Cochlear said it disagreed
with the conclusions drawn by the regulator, adding that the
group along with Demant would continue to "engage
constructively" to address the concerns raised by the watchdog.
    Demant did not immediately respond to a Reuters request for
comment.
    Cochlear also said that the deal was  no longer expected to
be closed before June 30. The CMA has set a June 5 deadline for
the in-depth probe.
    The proposed merger of Cochlear and Oticon Medical, the
hearing implants division of Demant, was referred for an
in-depth probe by the CMA in December last year.
    The regulator said the proposed merger would leave just a
single supplier of passive bone conductive solution (BCS)
products in the UK and merged businesses would dominate the
supply of BCS products in the country, with a share well above
90%.
    The deal is under investigation by the European Union (EU)
antitrust regulators as well, who had warned that the merger is
a significant threat to the European market.
    



($1 = 6.7929 Danish crowns)

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