Published on Mar 31, 2021
German medical device maker Siemens Healthineers (ETR: SHL) is close to securing approval from China’s antitrust authority for its proposed $16.4 billion acquisition of U.S. radiation oncology giant Varian Medical Systems (VAR), sources familiar with the matter said.
Approval from the State Administration for Market Regulation (SAMR) is the last major regulatory hurdle facing the deal. The deal still requires signoff from SAMR’s top officials, and if that occurs, the agency will issue an announcement that makes the decision official, the sources said.
Announced last August, Siemens Healthineers, in which industrial German conglomerate Siemens holds a majority stake, agreed to purchase Varian in a move that would create “a multi-disciplinary global healthcare leader with the most comprehensive cancer care portfolio in the industry.”
The companies expect the acquisition to close in the first half of this year.
SAMR doesn’t comment on ongoing cases. Spokespeople for Siemens Healthineers and Varian didn’t respond to requests for comment.
On February 19, the European Commission cleared the deal subject to conditions, including the company continuing to keep its imaging and oncology software solutions interoperable with third-party offerings.
Palo Alto, California-based Varian has long been a global market leader in radiation therapy with a market share of over 50%.
Siemens Healthineers produces imaging and diagnostic systems such as MRI machines, CT machines, and PET scanners, which are crucial to the radiotherapy capabilities Varian provides.