Alcon (NYSE:ALC), the global leader in eye care, officially terminated its definitive merger agreement with STAAR Surgical Company (NASDAQ:STAA) on Tuesday, January 6, 2026.
The collapse of the deal, originally valued at $1.5 billion and later raised to approximately $1.6 billion, follows a decisive rejection by STAAR’s stockholders at a special meeting earlier that day.
The acquisition was thwarted by a high-profile activist campaign led by Broadwood Partners, STAAR’s largest shareholder with a 30.2% stake.
Broadwood, along with other investors, argued that Alcon’s final cash offer of $30.75 per share significantly undervalued the company's long-term potential as a standalone entity.
Despite the offer representing a 74% premium over STAAR's 90-day volume-weighted average price prior to the initial August 2025 announcement, preliminary vote counts indicated that management failed to secure the necessary support to proceed.
Alcon CEO David J. Endicott stated that the company remained "disciplined" regarding price and risk throughout the five-month process.
Following the termination, neither party is required to pay a break-up fee.
Alcon shares rose 1.9% in Tuesday trading as investors cheered the firm's capital discipline, while STAAR Surgical shares plummeted 12% to $21.03 as the removal of the acquisition premium triggered a sharp sell-off.