On Thursday, Britain’s Competition and Markets Authority claimed Cochlear’s acquisition of Demant’s hearing implants business could hinder competition and raise NHS pricing.
In a statement, the CMA warned that the proposed 850 million Danish crown ($125 million) agreement between two of Britain’s top hearing implant companies could harm patients and raise NHS costs.
Cochlear (COH.AX) and Denmark’s Demant (DEMANT.CO) said they disagreed with the CMA’s findings and would “engage constructively” to address its concerns.
Demant claimed it would “discontinue” Oticon Medical regardless of competition regulators’ findings because it had previously concluded it would never become a global leader in hearing implants.
French Foreign Direct Investment regulations and EU and Australian competition officials are also reviewing the acquisition.
The CMA has until June 5 to complete its investigation of the purchase, which Cochlear claimed would not conclude until June 30.
The regulator claimed the combined business would leave only one provider of passive bone conductive solution (BCS) products in Britain, with a market share far above 90%.
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