Synthes-Stratec Inc. receives statement of objection from German merger control authority
Paoli/USA and Oberdorf/Switzerland, February 11, 2004
Synthes-Stratec Inc. (SWX: SYST) on Tuesday received a formal statement of objection from the German competition authority (Bundeskartellamt) in which the Bundeskartellamt has stated its intention to prohibit the merger between Synthes-Stratec Inc. and the Osteosynthesis business of Mathys Medical. The German authority takes the preliminary view that the above business combination will create a dominant position for the combined group on the German market for trauma products. Synthes-Stratec Inc. has been given two weeks time to file a brief in which it can refute the preliminary findings of the Bundeskartellamt.
The worldwide combination of Synthes-Stratec Inc. and the osteosynthesis business of Mathys Medical (except for Germany) was closed on Friday, February 6, 2004. The German merger control procedure has no effect on the closing of the transaction in the rest of the world, which has already occurred.
"The Bundeskartellamt has not yet decided the case, but only communicated its preliminary view" Mr. Hansjörg Wyss, Chairman and CEO of Synthes-Stratec Inc. stated. "We are convinced, and we are willing to prove to the German authorities, that effective competition will continue to exist on the German orthopaedics market after the merger of Synthes-Stratec Inc. and Mathys Medical. Also, we are prepared to appeal a prohibition decision if the German authorities cannot be convinced of our position and no suitable alternative measures can be negotiated."
For further information please contact
Peter Fehlmann, Investor Relations, Synthes-Stratec, Inc.
Phone: +41 61 965 63 39, Fax: +41 61 965 66 06
e-mail: ir.info@synthes.com