Boston Scientific Corporation Stock Surges on Potential Stryker Takeover

Boston Scientific Corporation (NYSE:BSX) stock was soaring Monday on talk of a possible takeover by Stryker Corporation (NYSE:SYK).

Boston Scientific Corporation Stock Surges on Potential Stryker Takeover

Source: Boston Scientific

According to recent reports, Stryker recently approached Boston Scientific Corporation with its takeover offer. The report doesn’t include much in the way of details. It’s unknown how much the offer was for, or if BSX is interested in it.

What is clear is that the deal could be a boon to both companies. Both Boston Scientific Corporation and Stryker create medical devices. The two have their own unique offerings, but there are some offers that cross over.

If Stryker and Boston Scientific Corporation were to become a single company, they would have a new market cap of $110 billion. This could result in the new company becoming a solid competitor for rival Medtronic PLC (NYSE:MDT), which has a market cap of $117.30 billion, reports CNBC.

Stryker’s offer for Boston Scientific Corporation is likely going to be the largest deal of 2018 to date. BSX currently has a market cap of $44 billion as of Monday morning and SYK will have to offer more than that if it is looking to acquire the company.

A possible combination of Boston Scientific Corporation and Stryker makes sense in the current market. There’s been a lot of other acquisitions and mergers between healthcare companies lately. This is partly due to looser restrictions on mergers, MarketWatch notes.

BSX stock was up 9%, SYK stock was down 3% and MDT stock was down slightly as of Monday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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