Further to the announcement last April that Safran had reached an agreement to sell Morpho Detection, to Smiths Group Plc for an enterprise value of $710 million, Smiths has now confirmed that the European Commission has finally given clearance for the proposed acquisition which it was originally anticipated would be closed during the first quarter of 2017.
In order to secure approval in Phase I of the EU merger review process, Smiths Group proposed the divestment of Morpho Detection’s explosive trace detection (“Trace”) business. This divestment is conditional on the successful closing of Smiths Group’s acquisition of Morpho Detection and on the European Commission’s approval of the purchaser of the Trace business as a suitable purchaser.
Completion of the acquisition of Morpho Detection by Smiths Group remains conditional upon approval from the relevant authorities in the United States and certain other territories, among other conditions. Smiths Group continues to engage with these authorities in order to secure the necessary clearances as soon as possible.