October 18, 2016 – by Reuters
Abbott Laboratories, which is in the process of buying St. Jude Medical for $25 billion, said the companies would sell some of their medical devices to Japan-based Terumo for about $1.12 billion.
Abbott said on Tuesday the deal is an important step toward completion of the St. Jude acquisition, which is scheduled to close by the year-end.
The deal is subject to the successful completion of Abbott’s acquisition of St. Jude and other approvals.
The divestiture was a nice win for the companies as it signaled that the deal remained on track to close before the year-end and the price seems “extremely lucrative,” Canaccord Genuity analysts wrote in a client note.
St. Jude’s STJ -0.28% shares rose 1.93%, their biggest intraday percentage jump since the deal with Abbott was announced in April, to $79.16. Abbott’s ABT -2.28% shares gained about1% to $40.96.
