Royal Philips Electronics has delayed the closing of their previously announced $5.2 billion merger with Respironics until Feb. 22 as the merger has not yet received approval from the European Union (EU).
Philips, which announced Dec. 21 that it would acquire the Murrysville, Pa.-based respiratory medical technology provider, originally said the offer to shareholders would expire Feb. 1.
Both companies said the offer is being extended because, on Feb. 1, not all conditions to the offer had been satisfied or waived by Philips Merger Sub, including the approval from the EU.
Philips also said it had received a preliminary number of tenders for about 60 million Respironics shares by Feb. 1, representing about 77 percent of the fully diluted outstanding shares.
The deal has received U.S. regulatory approval. The EU has given Respironics until March 5 to answer questions it has about the merger.
In December 2007, Philips announced plans to buy Respironics for $5.26 billion. Respironics' board unanimously approved the deal, which was expected to close by Jan. 31.
The deal is expected to close by the end of the first fiscal quarter.