January 6, 2026
Finance

STAAR Surgical and Alcon Merger Proposal Rejected by Shareholders, STAAR to Continue Independently

Failed shareholder vote leads to termination of merger agreement with no fees payable, as STAAR refocuses on growth and operational efficiencies

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Summary

STAAR Surgical Company announced its merger agreement with Alcon Inc. was not approved by shareholders during a special meeting. Consequently, STAAR plans to end the agreement and remain an independent, publicly traded entity. The company aims to prioritize profitable sales growth and expand the use of its EVO ICL technology globally. The decision followed opposition from major STAAR shareholders, including Broadwood Partners and Yunqi Capital Limited. The merger negotiation had included an upgraded purchase price of $30.75 per share, valuing STAAR at approximately $1.6 billion. Following the announcement, STAAR shares fell sharply while Alcon’s shares experienced a mild increase.

Key Points

STAAR Surgical’s shareholders voted against the merger with Alcon, leading to the planned termination of the agreement with no termination fees payable.
CEO Stephen Farrell stated that STAAR will prioritize profitable sales expansion and efficiency improvements while focusing on broader global usage of its EVO ICL technology.
Significant shareholders Broadwood Partners (30.2% stake) and Yunqi Capital Limited (5.1% stake) publicly opposed the merger proposal prior to the shareholder vote.
The merger terms were amended during negotiations to a cash offer of $30.75 per share, raising the total equity valuation of STAAR to roughly $1.6 billion.

On Tuesday, STAAR Surgical Company (NASDAQ: STAA) disclosed that its shareholders did not approve the proposed merger with Alcon Inc. (NYSE: ALC) during the Special Meeting of Stockholders. As a result, STAAR stated it intends to terminate the merger agreement with no associated termination fees required by either party, allowing STAAR to maintain its status as an independent publicly traded company.

Stephen Farrell, Chief Executive Officer of STAAR Surgical, addressed the company’s strategic direction after the vote. Farrell emphasized that the company’s immediate focus would remain on delivering profitable sales expansion coupled with improved efficiencies across its distribution network. Highlighting the company's technological product, Farrell reiterated the importance of broadening the global application of the EVO Implantable Collamer Lens (ICL), describing this as a core mission moving forward.

Shareholder opposition largely influenced the outcome of the merger vote. Broadwood Partners, an investor holding approximately 30.2% of STAAR’s shares, expressed disapproval of the acquisition deal, urging focus on the company’s independent prospects. According to Broadwood, STAAR currently benefits from a leading technological position in its market space, a robust financial standing, and strong presences in significant markets. The firm also noted the clear opportunities for both short- and long-term enhancements in growth and profit margins.

Similarly, in December 2025, Yunqi Capital Limited, which controls around 5.1% of STAAR’s stock, publicly opposed the merger in correspondence to shareholders. This reflected broader apprehensions among significant investors regarding the terms of the deal and the future trajectory of the company under Alcon ownership.

The merger discussions originally began in August 2025, when Alcon agreed to acquire STAAR Surgical, a manufacturer specializing in the implantable collamer lens technology, for an equity valuation close to $1.5 billion. Subsequent negotiations led to an amended purchase price of $30.75 per STAAR share in cash, reflecting an incremental valuation increase of approximately $150 million, bringing the total equity value close to $1.6 billion.

Following the shareholder rejection announcement, market reactions were swift for both companies. STAAR Surgical’s stock price declined by approximately 12.20%, settling near $21.02 per share. In contrast, shares of Alcon experienced a modest rise, increasing roughly 1.20% to around $81.62, according to real-time data from Benzinga Pro at the time of publication on Tuesday.

With the merger agreement expected to be terminated, STAAR’s leadership appears committed to reinforcing the company's independent strategic pillars. Key initiatives include driving profitable expansion through its product offerings and enhancing operational efficiencies to maximize shareholder value. Moreover, the firm is focused on aggressively increasing global adoption of its EVO ICL technology, positioning it as a foundational element for sustained growth.

This development highlights the divided perspectives among major shareholders concerning the merits of the acquisition offer against the prospects of continuing independently. It remains to be seen how STAAR will navigate evolving competitive dynamics in the ophthalmic device market and execute on its growth ambitions ahead.

Risks
  • Potential uncertainty regarding STAAR's future growth and profitability outside of a strategic merger, as the company will need to execute growth and operational efficiencies independently.
  • The opposition from major shareholders highlights possible internal challenges in aligning stakeholder interests toward long-term corporate strategies.
  • Market reaction to the failed merger may pressure STAAR’s stock price and investor confidence in the short term.
  • The ophthalmic device sector’s competitive landscape may pose challenges to STAAR’s ambitions to expand the EVO ICL technology’s global usage without the resources or integration advantages provided by Alcon.
Disclosure
Education only / not financial advice
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