Boston Scientific (NYSE:BSX) will no longer be acquiring a majority stake in Korea-based medical device manufacturer M.I. Tech.
The Marlborough, Massachusetts-based company announced plans to acquire a 64% stake in M.I. Tech in June 2022. It valued the deal at approximately $230 million.
At the time, the company expected to close the transaction by the end of 2022. However, the deal remained contingent on certain conditions, including regulatory approvals. Those required approvals contributed to the termination of the agreement.
Boston Scientific will instead acquire a nearly 10% stake in M.I. Tech, according to a company spokesperson. M.I. Tech’s offerings include the Hanarostent family of conformable, non-vascular, self-expanding metal stents, which Boston Scientific has distributed the platform in Japan since 2015.
Stat News reported the change of plans on May 24. The Boston Scientific spokesperson provided the following statement on the decision to scrap the initial deal:
“As a company, we actively pursue opportunities to bring innovative technologies to our customers around the world. Our agreement to purchase the majority stake of M.I.Tech Co., Ltd, from Synergy Innovation Co., Ltd, required global regulatory approvals that we were not able to obtain in some countries. For this reason, we have terminated the original agreement and signed a new agreement to purchase a minority stake (9.9%) of M.I.Tech. We will continue offering the company’s Hanarostent technology in Japan through an extended distribution agreement.
“While we are disappointed that we will not complete this purchase as initially constructed, we are committed to investing in innovative, patient-centric technologies that solve unmet clinical needs and to continuing to grow our relationship with M.I.Tech. We expect to complete the minority stake purchase in mid-2023, subject to customary closing conditions.”
The FTC has its say
In response to the confirmation that Boston Scientific terminated the initial purchase agreement, the U.S. Federal Trade Commission issued a statement.
FTC Bureau of Competition Director Holly Vedova said:
“I am pleased that Boston Scientific and M.I. Tech have abandoned their proposed transaction in response to investigations by FTC staff and our overseas enforcement partners. The FTC will not hesitate to take action in enforcing the antitrust laws to protect patients and doctors. I would like to thank the entire FTC team for their excellent work on this matter.”