Boston Scientific Corporation confirmed the termination of its original agreement to acquire a majority stake in M.I.Tech Company, Ltd.
The decision was made due to concerns over the inability to obtain necessary regulatory approvals in certain countries, according to MD+DI Online. However, Boston Scientific did not completely sever ties with M.I.Tech, as they signed a new agreement to purchase a minority stake of 9.9% in the company.
“I am pleased that Boston Scientific and M.I. Tech have abandoned their proposed transaction in response to investigations by FTC staff and our overseas enforcement partners," Federal Trade Commission Bureau of Competition Director Holly Vedova said in a release. "The FTC will not hesitate to take action in enforcing the antitrust laws to protect patients and doctors. I would like to thank the entire FTC team for their excellent work on this matter.”
Corporate representatives went into more detail regarding the agreement, according to MD+DI.
“As a company, we actively pursue opportunities to bring innovative technologies to our customers around the world,” a representative from Boston Sci told MD+DI. “Our agreement to purchase the majority stake of M.I.Tech Co., Ltd, from Synergy Innovation Co., Ltd, required global regulatory approvals that we were not able to obtain in some countries. For this reason, we have terminated the original agreement and signed a new agreement to purchase a minority stake (9.9%) of M.I.Tech. We will continue offering the company’s Hanarostent technology in Japan through an extended distribution agreement.”
Boston Scientific Corporation revealed its expansion plans in June 2022. The company said it had entered into a definitive agreement with Synergy Innovation Company Ltd, a Korean conglomerate, to acquire a majority stake of approximately 64% in M.I.Tech. M.I.Tech is a well-established Korean manufacturer and distributor of medical devices, serving the healthcare industry with its innovative products.
