EU to clear Zimmer's $13.4 billion Biomet deal - sources

By Foo Yun Chee

BRUSSELS (Reuters) - U.S. medical device maker Zimmer (ZMH.N) is set to secure conditional approval from European Union regulators for its proposed $13.4 billion (9 billion pounds) takeover of rival Biomet, two people with knowledge of the matter said on Wednesday.

Zimmer, which would become the No. 2 player in the $45 billion global orthopaedics market after the acquisition, revised its concessions to the European Commission last month, saying they were generally consistent with an earlier package.

In December the company proposed selling one brand for partial, or unicompartmental, knee replacements and one elbow brand in Europe, as well as a knee replacement brand in two European countries.

"The deal will be approved," said one of the sources, declining to be named because the Commission has not made a final decision yet.

Indiana-based Zimmer did not immediately reply to an emailed request for comment and Commission spokesman Ricardo Cardoso declined to comment.

The EU competition authority has set a May 26 deadline for its decision.

The pharmaceutical sector has seen a spate of deals over the past year as companies seek to bulk up in the face of pricing pressures from hospitals, insurers and cash-strapped governments.

Johnson & Johnson (JNJ.N) is the world's largest seller of orthopaedic products.

(Editing by David Goodman)