By Debbie Cai
The Federal Trade Commission said Corning Inc. (GLW) has to
transfer assets and supply some of its laboratory products to
another company to quell anticompetitive concerns tied to the
specialty glass company's proposed purchase of a Becton Dickinson
& Co. (BDX) unit.
The proposed FTC agreement stipulates that Corning has to
provide assets and assistance for life-science company
Sigma-Aldrich Corp. (SIAL) to produce tissue-culture treated
dishes, plates and flasks akin to those made by Corning. Corning
has to supply such products to be marketed under Sigma-Aldrich's
brand until the latter is able to manufacture them on its own.
Corning's life-sciences segment makes plastic labware, such as
TCT plates on which researchers, at drug companies and
biotechnology firms, grow cells.
Corning in April said it intended to pay about $730 million in
cash to buy the bulk of Becton Dickinson's lab-products business,
Discovery Labware, which makes such plastic plates. Discovery
Labware expects to post sales of about $235 million this year, and
is likely to boost Corning's annual life-sciences revenue by 40%,
Corning's Chief Executive Wendell P. Weeks said earlier.
The FTC said that since the North American markets for TCT cell
culture products are highly concentrated, and Corning and Discovery
Labware are the leading suppliers in their market, the deal would
have anticompetitive effects.
Becton Dickinson's fiscal third-quarter earnings fell due to
higher costs and lower interest income overshadowing modest revenue
growth. Its shares are up 28 cents at $75.67 in recent trading and
since the start of the year, the stock is up 1.1%.
Corning third-quarter earnings shrank 36% due to persistently
weak consumer demand dragging down prices for its specialty glass.
Shares are down eight cents at $11.74. The stock is down 9.5% since
the beginning of the year.
Write to Debbie Cai at debbie.cai@dowjones.com
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