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Friday, October 3, 2014

EU regulators open extensive probe into Zimmer, Biomet deal, (NYSE: JNJ)

European Union antitrust regulators opened on Friday an extensive investigation into U.S. medical device maker Zimmer's $13.4 billion bid for Biomet, increasing the pressure on Zimmer to offer concessions to allay their concerns.The deal would make Zimmer the second-largest seller of orthopaedic products in the world behind Johnson & Johnson and also reinforce its presence in the fast-growing sports medicine sector.The European Commission said the deal may lead to more expensive orthopaedic products, less innovation and choice for consumers, confirming a Reuters story on Oct. 2."The proposed acquisition may substantially lessen competition in the markets for hip, knee, elbow and shoulder implants, as well as for other products, such as bone cement, bone cement accessories and a surgical tool called pulse lavage," the Commission said.

Johnson & Johnson is a holding company. The Company is engaged in the research and development, manufacture and sale of a broad range of products in the health care field. Shares of JNJ traded higher by 0.5% or $0.52/share to $104.37. In the past year, the shares have traded as low as $85.50 and as high as $108.77. On average, 6372790 shares of JNJ exchange hands on a given day and today's volume is recorded at 1414869.