(Reuters) — Zimmer (NYSE:ZMH) is set to secure conditional approval from European Union regulators for its proposed $13.35 billion takeover of rival Biomet, 2 people with knowledge of the matter said today.
Zimmer, which would become the No. 2 player in the $45 billion global orthopedics market after the acquisition, revised its concessions to the European Commission last month, saying they were generally consistent with an earlier package.
In December the company proposed selling 1 brand for partial, or unicompartmental, knee replacements and 1 elbow brand in Europe, as well as a knee replacement brand in 2 European countries.
"The deal will be approved," said 1 of the sources, declining to be named because the commission has not made a final decision.
Warsaw, Ind.-based Zimmer did not immediately reply to an emailed request for comment and commission spokesman Ricardo Cardoso declined to comment.
The EU competition authority has set a May 26 deadline for its decision.
The medical device sector has seen a spate of deals over the past year as companies seek to bulk up in the face of pricing pressures from hospitals, insurers and cash-strapped governments.
Yesterday Biomet said the U.S. Justice Dept. extended by a year a deferred prosecution agreement reached in 2012 over alleged violations of the Foreign Corrupt Practices Act.