Bio-Rad Laboratories, Qiagen Mull Merger Of Equals

Vandana Singh
1 min read
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In this article:

  • Bio-Rad Laboratories Inc (NYSE: BIO) is reportedly in talks to merge with Qiagen NV (NYSE: QGEN), but any agreement isn't likely for another few weeks or more, or it may not happen at all.

  • A deal between Qiagen and Bio-Rad would be the latest tie-up in the medical-diagnostic market. The sector has grown as the pandemic helped increase demand for testing.

  • According to the Wall Street Journal report, a deal between the two companies could be worth more than $10 billion, making it one of the biggest in the healthcare testing domain after Illumina Inc's (NASDAQ: ILM) $8-billion takeover of cancer-testing firm Grail.

  • Qiagen was going to be bought by Thermo Fisher Scientific Inc (NYSE: TMO) for about $10 billion in 2020 but did not get shareholder approval. Activist investor Davidson Kempner Capital Management led the charge against the deal, arguing that it undervalued Qiagen.

  • Last year, nearly $6 trillion of transactions were struck globally, almost half of that in the U.S.

  • In addition to higher borrowing costs, lack of clarity about the direction of the economy and markets and fear of a tougher antitrust regime have contributed to the recent downturn.

  • Healthcare, viewed as recession resistant than other sectors, has remained relatively active as companies seek combinations.

  • Price Action: BIO shares closed at $392.86 on Monday. QGEN stock is down 1.23% at $43.32 during the premarket session on the last check Tuesday.

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