Agilent, Varian Merge By Placating FTC With Sale Of 3 Product Lines

The Federal Trade Commission agreed to the $1.5 billion merger of Agilent Technologies Inc. (A) and Varian Inc. (VARI) as long as they sell three product lines.

Agilent, which makes machines to analyze DNA, chemicals and other items, reached a deal to buy testing-equipment maker Varian last summer, but the FTC said the acquisition would have violated U.S. antitrust laws by reducing competition for three types of scientific-measurement instruments because the companies compete with one another in those markets.

Under a deal announced Friday, Agilent agreed to sell assets that make and sell micro gas chromatography instruments to Inficon Holding AG (IFCN, IFCN.EB). Varian will divest to Bruker Corp. (BRKR) two product lines, one for triple quadrupole gas chromatography-mass spectrometry instruments and another for inductively coupled plasma-mass spectrometry instruments. The sales must be completed within 10 days.

The order also gives the FTC the right to appoint an interim monitor to oversee the sale of the assets and ensure that the commission is kept fully informed about the sales. The FTC approved the settlement unanimously.

In a separate release Friday, Agilent said most of Varian's remaining product lines will join the company's chemical-analysis group, while a few key business will join the life-sciences group. Chief Executive Bill Sullivan said the takeover, the company's biggest ever, furthers its "evolution toward becoming a global leader in bioanalytical measurement."

-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; [e-mail]