Palo Alto’s Varian purchase by Siemens Healthineers in $16.4bn deal receives EU nod

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Palo Alto’s Varian purchase by Siemens Healthineers in $16.4bn deal receives EU nod

On Friday, the EU antitrust regulators had cleared Siemens Healthineers’ $16.4 billion buyout deal for US-based radiation oncology treatments and software manufacturer Varian Medical Systems with conditions, cementing ways for the Erlangen-based German healthcare company’s move to emerge as a global leader in cancer therapy.

In point of fact, according to the conditions submitted by EU antitrust regulators to pave the ways for a $16.4 billion buyout deal for the Californian specialty oncology treatment company, the German medical technology company that began as a small family business in Berlin back in the 1847s by a Werner von Siemens, an electrical engineer, investor and entrepreneur who had also founded the German electrical and telecom conglomerate Siemens AG, must pledge that its medical imaging and radiotherapy equipment technology would work alongside its German rivals.

Nonetheless, the pledge as proposed by the EU antitrust regulators would be viable until 2030.

EU Commission greenlights Siemens Healthineers’ Varian purchase with condition

Meanwhile, approving Siemens Healthineers’ $16.4 billion buyout deal for Varian under conditions, EU Competition Commission Chief Margrethe Vestager said in a statement, “High quality medical imaging and radiotherapy solutions are crucial to diagnose and treat cancer.

The efficiency and safety of treatment relies on the ability of these products to work together. Nevertheless, the deal had received a US antitrust approval in October last year. Palo Alto, California-base Varian, the 73-year-old American radiation oncology treatment giant employing more than 10,000 people, has long been a global market leader in radiation therapy with a market share of over 50 per cent.