Two days after the acquisition speculation sparked in the internet, medical equipment maker Stryker (SYK) stated today in an 8-K filing that it is “not in discussions with Boston Scientific Corporation (BSX) regarding a potential acquisition.”
On June 11, WSJ had reported that Stryker had offered to buy Boston Scientific, which made the latter’s shares shoot to its 52-week new high. On contrary, Stryker ended in red on Monday. Trading of both the companies’ shares was stopped for a while because of high volatility.
Related: Boston Scientific spikes to new 52-week high on takeover rumors
Earlier, both Stryker and Boston Scientific abstained from commenting on the deal. But today the Kalamazoo, Michigan-based medical tech company has confirmed officially that it is not interested in buying Boston Scientific. There are also rumors going around that Johnson & Johnson (JNJ) might bid on the Marlborough, Massachusetts-based company.
Considered one of the megadeals if happened, this acquisition would have created a combined company that would have had revenue of $25 billion in 2019, according to RBC analyst Glenn Novarro.
On Stryker’s confirmation that the deal was not happening, the company’s shares rose about 7% and Boston Scientific stock dropped around 7% during pre-market trading today. When the market opened up, Stryker and Boston Scientific continued the same trend.