LONDON, Oct 11 (Reuters Breakingviews) - Qiagen (QIA.DE) may once again find itself at the centre of an M&A drama. The $10 billion German lab tester is in talks with $10 billion U.S. life-science company Bio-Rad (BIO.N) , the Wall Street Journal reported on Monday. The news drove Qiagen’s share price up by nearly 7% on Tuesday. Any deal would follow Thermo Fisher Scientific’s (TMO.N) failed attempt to buy Qiagen for 11.3 billion euros ($11 billion) back in 2020.

There’s logic to the combination. Berenberg analysts, for example, reckon the two companies’ strengths would complement each other. Qiagen makes kit used by drug companies and academics to test for disease, and has a 60% market share of sample preparation, whereas Bio-Rad only has around 5%. Meanwhile, Bio-Rad is particularly strong in hospital lab work.

But regulatory hurdles could still scupper any deal. Both companies sell PCR testing machines, used widely during the coronavirus pandemic. Regulators in the United States and Europe have been increasingly wary of tie-ups that could lead to higher prices. Qiagen shareholders are also an obstacle. They rejected Thermo Fisher’s bid on the grounds that it undervalued the business. Hedge fund Davidson Kempner has been particularly vocal . Qiagen’s second M&A dance may be just as dramatic as the first. (By Aimee Donnellan)

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(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)

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