Aussie regulators approve Baxter's $4B Gambro merger

September 5, 2013 by Arezu Sarvestani

Australian healthcare regulators say they won't block Baxter's $4 billion play for dialysis devices giant Gambro, as long as Baxter ditches its renal replacement therapy division.

Aussie regulators approve Baxter's $4B Gambro merger

Australian business regulators decided this week that they won't opposed Baxter's (NYSE:BAX) nearly $4 billion buyout of Swedish dialysis maker Gambro AB, as long as Baxter follows through with its plan to ditch its renal replacement therapy business.

Baxter had earlier offered to ditch its renal division in efforts to appease EuroZone regulators, who approved the merger last month.

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Like EU regulators, the Australian Competition & Commerce Commission raised some red flags about the high-value merger, mandating that Baxter divest its renal replacement division to a company approved by the ACCC. Baxter agreed in July to sell the business to Japan-based Nikkiso Co Ltd (TSE:6376) for about $621 million (¥3.8 billion), a move that the regulators said they'd get behind.