• EU antitrust officials cautioned that Cochlear’s acquisition of Demant poses a substantial danger.
• EU’s competition enforcer has adopted a more severe stance.
• 13 European nations had demands from the European Commission to examine the $120 million transaction.

EU antitrust officials cautioned Wednesday that Australian hearing device manufacturer Cochlear’s (COH.AX) acquisition of Copenhagen-based Demant’s hearing implants business Oticon poses a substantial danger to the European market.

Following demands from 13 European nations, the European Commission stated that it would examine the 850 million Danish crown ($120 million) transaction despite the fact that it falls below the threshold for EU examination.

In recent years, the EU’s competition enforcer has adopted a more severe stance toward mergers that do not meet its requirements for scrutiny, out of concern that even small transactions can undermine competition in the absence of adequate remedies.

“The transaction threatens to significantly affect competition in the market for cochlear implants and bone conduction solutions in the EEA (European Economic Area) and in the referring countries,” the Commission said.

It stated that it is in the greatest position to assess the potential cross-border impacts of the transaction.

Cochlear must now seek EU approval before concluding the transaction.

Cochlear announced on Wednesday that the British competition watchdog has given the companies until December 13 to assuage its worries regarding the supply of bone conduction systems in Britain. The agency has no concerns regarding the availability of cochlear implants.

Cochlear reported last week that the Australian antitrust authorities have warned that the purchase is likely to significantly reduce competition in the supply of non-surgical bone conduction devices in Australia, with a final decision scheduled for March 16.

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