Snapshot: I see 4 BIG RISKS with the Globus + Nuvasive merger
1/ Combining different cultures.2/ Sales & distribution integration.3/ CE Compliance at Globus.4/ $1B debt at Nuvasive (Globus inherits NUVA's poor financial health).
Globus Medical: Does The NuVasive Merger Make Sense? (Seeking Alpha)
Summary
Globus Medical announced a merger with NuVasive on 8th February.
The merger will create the second-largest spine business behind Medtronic, with 21% of the global market share.
Analysts expressed doubts about the potential benefits of this merger, lowered their Buy ratings to Hold, and slashed price targets.
Institutional investors fled these stocks. GMED share price fell 21.9% and NUVA, while rising briefly, ended the week 3% lower than Wednesday.
Should retail investors of GMED and NUVA buy, hold, or sell their shares?
Preamble
Medical device companies fascinate me. Generally speaking, the business model of these companies is focused on meeting specific physical and medical needs. When these are met, thanks to humanity's technological advancements, the quality of millions of lives is improved. It just feels good to be a shareholder in companies with meaningful missi...
