Cochlear / Oticon merger inquiry
| Decision Date | 11 October 2022 |
| Date | 11 October 2022 |
| Subject Matter | Mergers |
| Court | Competition and Markets Authority (EW) |
Acquisition by Cochlear Limited of the
hearing implants division of Demant A/S
DECISION TO REFER
ME/6999/22
The CMA’s decision to refer under section 22 of the Enterprise Act 2002 given on 20
December 2022.
Introduction
1. Cochlear Limited (Cochlear) has agreed to acquire the hearing implants division
(Oticon Medical) of Demant A/S (the Merger). Cochlear and Oticon Medical are
together referred to as the Parties.
2. On 6 December 2022, the Competition and Markets Authority (CMA) decided under
section 33(1) of the Enterprise Act 2002 (the Act) that it is or may be the case that
the Merger consists of arrangements that are in progress or in contemplation which,
if carried into effect, will result in the creation of a relevant merger situation, and that
this may be expected to result in a substantial lessening of competition (SLC) within
a market or markets in the United Kingdom (the SLC Decision).1
3. On the date of the SLC Decision, the CMA gave notice pursuant to section
34ZA(1)(b) of the Act to the Parties of the SLC Decision. However, in order to allow
the Parties the opportunity to offer undertakings to the CMA for the purposes of
section 73(2) of the Act, the CMA did not refer the Merger for a phase 2
investigation pursuant to section 33(3)(b) on the date of the SLC Decision.
4. Pursuant to section 73A(1) of the Act, if a party wishes to offer undertakings for the
purposes of section 73(2) of the Act, it must do so before the end of the five working
day period specified in section 73A(1)(a) of the Act. The SLC Decision stated that
the CMA would refer the Merger for a phase 2 investigation pursuant to sections
33(1), and in accordance with section 34ZA(2) of the Act, if no undertakings for the
purposes of section 73(2) of the Act were offered to the CMA by the end of this
period (ie by 13 December 2022); if the Parties indicated before this deadline that
1 See Cochlear / Oticon merger inquir y.
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