Today, the Oberlandesgericht Düsseldorf confirmed that it does not have the power to grant interim relief in merger prohibition cases Today, the Oberlandesgericht Düsseldorf issued its formal decision concerning the closing of the acquisition of the ReSound group by Sonova. The Oberlandesgericht Düsseldorf does not deem itself authorized to grant interim relief in merger prohibition cases.
The terms of the Share Purchase Agreement with GN Store Nord A/S allow the parties to terminate the transaction if the conditions to closing, including the necessary merger control approvals, have not been obtained by August 15, 2007. Since the main appeal procedure in Germany can take months or even years, Sonova intends to terminate the transaction on August 15, 2007. The acquisition of the ReSound group will therefore not be further pursued.
The non-recurring costs incurred in connection with the planned acquisition of the ReSound group, in an amount of approx. CHF 36 million, will be charged to the profit and loss account of Sonova in the current financial year. Of this amount, CHF 19 million were already disbursed in the financial year 2006/07, so that the cash expenditure in the financial year 2007/08 is limited to approx. CHF 17 million.
Background On April 11, 2007, the German Federal Cartel Office (Bundeskartellamt, BKartA) blocked the acquisition of the ReSound group on a world wide basis. Sonova did not accept the decision of the BKartA and on May 2, 2007 appealed to the competent court (Oberlandesgericht Düsseldorf).
With the exception of the BKartA, all other competent competition authorities have approved the transaction and allowed Sonova to close the acquisition of the ReSound group.
All information in this regard can be found under: www.sonova.com/...
The terms of the Share Purchase Agreement with GN Store Nord A/S allow the parties to terminate the transaction if the conditions to closing, including the necessary merger control approvals, have not been obtained by August 15, 2007. Since the main appeal procedure in Germany can take months or even years, Sonova intends to terminate the transaction on August 15, 2007. The acquisition of the ReSound group will therefore not be further pursued.
The non-recurring costs incurred in connection with the planned acquisition of the ReSound group, in an amount of approx. CHF 36 million, will be charged to the profit and loss account of Sonova in the current financial year. Of this amount, CHF 19 million were already disbursed in the financial year 2006/07, so that the cash expenditure in the financial year 2007/08 is limited to approx. CHF 17 million.
Background On April 11, 2007, the German Federal Cartel Office (Bundeskartellamt, BKartA) blocked the acquisition of the ReSound group on a world wide basis. Sonova did not accept the decision of the BKartA and on May 2, 2007 appealed to the competent court (Oberlandesgericht Düsseldorf).
With the exception of the BKartA, all other competent competition authorities have approved the transaction and allowed Sonova to close the acquisition of the ReSound group.
All information in this regard can be found under: www.sonova.com/...
