Cochlear gets UK clearance to take over competitor

Hearing implant manufacturer Cochlear can move ahead with its purchase of competitor Oticon Medical’s cochlear implant following a positive finding from the UK Competition and Markets Authority (CMA).

However Cochlear will not be able to purchase the entire Oticon business as it initially hoped.

CMA published its final report on the proposed acquisition, concluding that it did not raise competition concerns and is ‘permitted to proceed’.

Previously CMA found provisionally that the acquisition may result in a substantial lessening in the supply of bone conduction hearing aids.

The CMA asserted that the competition between firms supplying bone conducting solutions in the UK to hearing loss was critical to driving innovation.

Cochlear manufactures both bone conducting hearing aids as well as its iconic cochlear hearing implant.

Oticon became available following a decision by its parent company Demant to exit hearing implants business activities, with Cochlear agreeing to pay $170 million for the business.

However the two companies will now pursue a transfer of Oticon’s cochlear implant business at a zero headline purchase price, ensuring ongoing support for Oticon’s 20,000 existing cochlear implant patients.

Cochlear CEO and President Dig Howitt said Oticon patients could be transitioned to Cochlear’s technology platform over time.

Howitt said: “We were disappointed to be blocked from acquiring the acoustics business.

“We will still be able to offer Cochlear’s technology to those customers into the future as our Baha sound processors are already compatible with Oticon Medical’s Pronto acoustic business.”

Further reading:
Cochlear buys hearing implant rival Oticon Medical

Picture: Cochlear