Hot stock to watch: According to a MarketWatch report, Johnson & Johnson (JNJ) said that the U.S. regulator has approved the $19.7 billion acquisition of medical device company Synthes, and JNJ has received the regulatory approval filing. This deal is expected to be completed at end of this Thursday.
JNJ also said the acquisition will boost a 3-5 cents increase in adjusted earnings for 2012, 10-15 cents growth for 2013.
This acquisition is the biggest one in Johnson & Johnson’s history of 125 years, which will add medical devices for treatment of fracture and trauma. Synthes has domination in trauma therapy medical device market, with an operating margin of up to 35%, the highest among the manufacturers with a more than $5 billion market cap.
JNJ stock price added 1.55%, or 0.96 to finish at $63.08 per share. Over the past 52 weeks, JNJ stock traded between $59.08 and $68.05, and the current stock price is 7.30% below the peak.