Sulzer Medica not to merge with Sulzer
The proposed merger between Sulzer Ltd and Sulzer Medica Ltd will not take place. The Boards of Directors and the Executive Management of both companies have acknowledged the critical assessment of this planned move by the financial markets. Sulzer Industries will continue the focus on Materials and Surface Technology. Sulzer Medica will further expand its core businesses of Orthopedics, Cardiovascular Prostheses and Dental Implants.
On September 18, 2000, the Executive Management of Sulzer presented the new corporate strategy designed to focus the Sulzer group on Medical Devices, Materials and Surface Technology, and New Ventures. This basic strategy is in place and is being implemented. The one component of the strategy which will not be realized is the proposed merger. Sulzer Medica will remain a publicly-traded company listed on the stock exchanges in Zurich and New York. The decision not to merge eliminates the need for the Extraordinary Shareholders’ Meetings of both companies.
The planned merger did not achieve the anticipated acceptance in the financial markets. Investors today show a strong preference for pure-player businesses – companies clearly concentrating on one field. For this reason, the Medical Devices and Industrial businesses will develop more independently in the future.
In Sulzer Industries, the strategic focussing will continue. The acquisition program to build the Materials and Surface Technology Group is underway. The decision not to merge with Sulzer Medica may have an impact on the financing potential. This is also the case for New Ventures.
The Board of Directors and the Executive Management are confident that the planned acquisitions and divestitures will be successfully completed and will result in significant value creation for Sulzer.