COPENHAGEN, DENMARK — According to a Reuters report on November 6, and also reported in other media outlets, the “Big 6” hearing aid makers Widex and Sivantos have withdrawn their application for the European Commission to approve their planned $8.2 billion merger.
Despite withdrawing their application, the companies state that they are committed to completing the merger. According to a spokesperson for EQT, the Swedish private equity firm and owner of Sivantos, was quoted by Reuters:
“EQT and Widex expect to proceed to a new notification of their project to the European Commission in due course and remain fully committed to closing the transaction once all regulatory clearances have been obtained”
The companies are said to be expecting the deal to be complete in the first half of 2019.
“We have not ended the project and we are still fully committed to closing the transaction when we have gotten all the necessary approvals,” Andrew Arnold, a press officer for unlisted Widex, told Danish media outlet Medwatch on Tuesday.
If the merger is successful, the combined company would become the third largest in the hearing industry, and could pose a significant challenge to larger rivals, William Demant (parent company to Oticon, Sonic and Bernafon hearing aid brands) and Sonova (parent company to Phonak, Unitron and Hansaton brands).
According to Reuters, the European Commission’s website shows the application for the merger was withdrawn on Oct. 30.
No additional public comments have been received from either company. Hearing News Watch will update this story as it develops.
Source: Reuters, Nasdaq