synergy

“We can foresee some pushback around capital discipline, given the 33% bid premium, and deal synergies are likely to be an important factor here,” he notes.

Yet it is hard to argue against the synergies and efficiencies of a more collaborative statistical approach.

Veolia said the deal would deliver synergies of $120 million within four years of completion, and be accretive to earnings per share from the second year.

Analysts said Thursday they don’t see synergies between Abbott and Exact Sciences—Exact’s diagnostic tests are run in central labs, while Abbott generally sells diagnostic instruments—though they could share a sales force.

The companies said the majority of the cost synergies would be achieved within the first three years after completion of the merger.