The U.K. Competition and Markets Authority has begun an investigation into the proposed $4.7 billion merger of Stryker (NYSE:SYK) and Wright Medical (NSDQ:WMGI).
Announced in November 2019, the merger would have Stryker pay $30.75 per share to acquire all of the issues and outstanding ordinary shares of Wright Medical. 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.
The U.K. antitrust body’s investigation follows one opened in December 2019 by the U.S. Federal Trade Commission. The Competition and Markets Authority said it will decide by July 15, 2020, whether it will launch a second phase of its investigation.
Kalamazoo, Mich.-based Stryker is the world’s largest orthopedic device company, with sales of $14.89 billion in 2019. Wright Medical, based in Amsterdam, posted net sales of $920.9 million for the same period.
Shares in WMGI and SYK were both up slightly in late-morning trading, with WMGI trading at $29.55 and SYK at $190.88.