Zimmer proposed a revised remedy package to the European Commission after the EC expressed concerns with Zimmer's initial proposed acquisition of Biomet.
The initial remedy package was proposed in December 2014, and the new proposal is relatively consistent with the previous one. However, the new package reflects a few modifications to address the EC's commends from a market test of the initial proposed remedy package.
Is this one likely to go through? Here are five things to know:
1. The transaction is still subject to the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The transaction will also need approval from the Japan Fair Trade Commission, among other customary closing conditions.
2. Despite these few set backs with revised proposals, Zimmer reported being "pleased with and encouraged by the progress to date with the overall regulatory process," in a company news release.
3. The EC doesn't have to make a decision about the new revised proposal until May 26, 2015, but Zimmer maintains expectations for the transaction to close during the first quarter of 2015.
4. Under current merger terms, Zimmer plans to acquire Biomet in a cash and stock transaction valued at $13.35 billion, including assuming net debt.
5. The acquisition also prompted concerns from previous scandals. Biomet fired employees who were paying providers in Brazil and Mexico to use products, as well as bribing customs officials. Biomet plans to comply with investigators.