An SEC filing today showed that the Federal Trade Commission is upping its scrutiny of the proposed merger between Stryker (NYSE:SYK) and Wright Medical (NSDQ:WMGI) that is worth up to $4.7 billion in cash.
After Stryker filed a premerger notification and report form with the FTC on Dec. 16, 2019, the FTC sent a second request to the company with respect to the offer. Wright Medical also shared that it received a second request on Dec. 31, 2019. The second request is a discovery procedure performed by the FTC to investigate mergers and acquisitions that may have anticompetitive consequences.
As a result, the waiting period under the HSR Antitrust Act for the purchase of shares in the offer was extended to 11:59 p.m. Eastern time on the 10th calendar day following the date of the companies’ substantial compliance with the second request, unless that waiting period is terminated.
The two companies initially announced the proposed acquisition on Nov. 4, 2019. In the agreement, Stryker is slated to pay $30.75 per share and will acquire all of the issues and outstanding ordinary shares of Wright Medical for an equity value of $4.7 billion. With outstanding convertible notes, total enterprise value is set at $5.4 billion.
At the time of the announcement, the companies expected the acquisition to close in the second half of 2020.