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Olympus Retreats from Taewoong Medical Acquisition Amid Data Discrepancies

Deal Reversal Follows Discovery of Inconsistent Product Data, Affecting $255.5 Million Transaction
Japan
South Korea
o 7733.TSE Blue Chip 150
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Olympus has decided to undo its purchase of South Korea’s Taewoong Medical, a manufacturer of gastrointestinal stents, after uncovering issues with the provided product data. The initial agreement, finalized in January, involved an upfront payment of $255.5 million, with an additional contingent sum of up to $114.5 million based on Taewoong’s post-acquisition performance. However, post-deal evaluations revealed discrepancies in the product information previously supplied, breaching the acquisition’s terms.

The resolution involves the original Taewoong shareholders repaying the full amount to Olympus, which will in turn relinquish its shares in the company. Despite the transaction’s unraveling, Olympus has assessed that this development will have a negligible impact on its fiscal year 2023 consolidated financial results. The swift resolution underscores the rigorous due diligence standards and the emphasis on transparency and accuracy in corporate transactions. This move also highlights the importance of stringent post-acquisition reviews, ensuring that all aspects of a deal align with the initial representations and agreements.

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