Becton falls after co to merge biosciences and diagnostics unit with Waters

Shares of medical device maker Becton Dickinson BDX.N fall 2.3% to $172 premarket

Co to combine its biosciences and diagnostic solutions business with Waters in a deal valued at about $17.5 billion

Shares of Waters Corp WAT.N down 5% at $335 premarket

The deal is structured as a Reverse Morris Trust, which allows a company to avoid a big tax bill by spinning off a unit that it wants to divest while simultaneously merging it with another company

The transaction is expected to close around the end of the first quarter of 2026

The combined company will continue to operate under the Waters name, and is expected to generate pro forma revenue of about $6.5 billion

Up to last close, BDX down 22.4% and WAT down 4.9% YTD