Waters Corporation Stock Plunges 10.37% on Merger Announcement

On July 14, 2025, Waters Corporation's stock experienced a significant drop of 10.37% in pre-market trading.

Waters Corporation has announced a definitive merger with Becton Dickinson's Biosciences & Diagnostic Solutions unit. This merger, valued at approximately $17.5 billion, involves the spin-off of the unit to Becton Dickinson shareholders and its simultaneous merger with a wholly owned subsidiary of Waters. The merger is not just about combining financial resources but aims to create a future-proof leader in a $40 billion market, with a clear path to margin expansion.

Investors have reacted to the merger announcement with a mix of optimism and caution. While the merger is expected to create a stronger entity in the diagnostics and research market, the immediate market reaction has been negative, with Waters' stock price dropping significantly. This reaction could be attributed to concerns over integration challenges and the potential dilution of earnings per share in the short term.