Vaccine And Blood Products Developer CSL Expects FTC To Block Proposed Talecris Bid
Tue, 05/26/2009 - 9:55am
MELBOURNE, Australia (AP) — Australian vaccines and blood products developer CSL Ltd. said Monday that the U.S. Federal Trade Commission is likely to block its proposed $3.1 billion acquisition of rival Talecris Biotherapeutics Inc. Melbourne-based CSL said that managing director Brian McNamee had met with FTC commissioners in Washington on May 22 to discuss the acquisition. "Dr. McNamee put forward the pro-competitive arguments of CSL's case, including significant efficiencies and benefits to consumers resulting from the deal, presented potential remedies which may enable approval, and discussed the consideration of the case by FTC staff," CSL said in a statement to the Australian Securities Exchange. "CSL was informed during the meeting that the FTC staff, after reviewing CSL's case and remedy proposals, have recommended that the commissioners initiate legal action in the U.S. District Court to block the transaction," it added. CSL said a vote and decision by the commissioners will likely to be announced by Thursday. CSL told the Australian exchange on May 7 that the FTC was considering the Talecris acquisition. U.S.-based Talecris had annual revenue of more than $1.4 billion in the 2008 calendar year — up more than 15 percent on the previous year. It operates more than 50 plasma collection centers and two manufacturing plants in the United States. Analysts have said that Talecris is growing better than expected and would be a positive acquisition for CSL. CSL announced in August 2008 that it had signed an agreement to acquire Talecris. CSL had said the acquisition would be highly complementary to its existing business, giving it additional scale, breadth of products and expanded geographical presence in the global plasma products market. CSL estimated that profit improvement initiatives would generate benefits of about $225 million per annum.