In recent years, Abbott has begun to focus on the operation of mergers and acquisitions in order to find new business growth points. However, the company has recently planned to launch two large acquisitions at the same time, which is rare in the industry. The company announced last month that it would acquire cardiovascular device manufacturer St. Jude Medical for $25 billion, and in February it announced the acquisition of the diagnostic company Alere for $5.8 billion. The total amount of these two transactions will be as much as $30 billion. However, not everyone believes that Abbott has the ability to complete both transactions at the same time. Recently, rating company Moody's said that if Abbott continues to carry out both transactions at the same time, Moody's will downgrade its credit rating. The reason is that Abbott’s debt will triple its size. Moody's said that it took into account the debt of the two companies mentioned above. Abbott will have to pay at least $31 billion (including $5.7 billion in debt) if it wants to complete the acquisition of St. Jude Medical. If it buys Alere, it will have to pay $8.4 billion (including $2.4 billion in debt). At the same time, the two largest acquisitions in the history of Abbott will undoubtedly greatly affect the company's cash flow. However, it seems that Abbott seems to be aware of the problem and is trying to get out of the Alere acquisition. Company CEO Miles White said in a conference call on April 20 that he might abandon Alere's acquisition idea, and just last week, Alere rejected Abbott's proposal to terminate the acquisition for $50 million. After the spin-off of Abbott and Abbott, it has been looking for new business growth points. Abbott has acquired a new drug research and development department, while Abbott has access to diagnostics, medical devices and other departments. Therefore, in recent years, Abbott has made great efforts to gain a foothold in the field of medical devices. However, as the saying goes, you can't eat a fat man. Obviously everyone thinks that Abbott’s two large transactions at the same time will definitely do more harm than good. Disposable Procedure Kits,Disposable Debridement Packs,Disposable Debridement Kits,Disposable Debridement Bags Suzhou JaneE Medical Technology Co., Ltd. , https://www.janeemedical.com
Abbott also acquired St. Jude and Alere?