FTC Places Conditions on a Corning Acquisition of Discovery Labware

   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 [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires