German Cartel Office to prohibit merger of Synthes and Mathys in Germany
Oberdorf/Switzerland, March 29, 2004
Synthes-Stratec Inc. (SWX: SYST) was informed today by the German competition authority (Bundeskartellamt) that the Bundeskartellamt has decided to prohibit the merger between Synthes-Stratec Inc. and the Osteosynthesis business of Mathys Medical. Although the decision prohibits the merger in its entirety, it will only have an affect on the German operations of the parties. The German authority alleges that the business combination will create a dominant position for the combined group in what the authority believes to be a distinct German market for trauma products. Synthes-Stratec Inc. will have to carefully analyze the reasons for the prohibition. Therefore, it is not in a position to further comment at this stage.
"We will carefully analyze the decision by the Bundeskartellamt as fast as we can" Hansjörg Wyss, Chairman and CEO of Synthes-Stratec Inc. stated, "but remain convinced that a merger does not have a negative effect on the competitive situation in the German orthopedic market, and the trauma market segment. We therefore are prepared to appeal this prohibition decision."
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