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Investing.com -- Shares of UnitedHealth (NYSE:UNH) fell 4.6% Monday as concerns mounted over its pending merger with Amedisys (NASDAQ:AMED) following the announcement that the FTC will maintain Biden-era merger rules. The new guidelines, which are now in effect, will be used to analyze the merger, potentially complicating the $101 per share acquisition of Amedisys by UnitedHealth’s unit Optum, which was agreed upon in June 2023.
Further, the Department of Justice has expressed reluctance to consider Amedisys’s motion for a stay of the Section 7A claim without a full briefing. The DoJ’s stance suggests a meticulous review process that could delay the merger, as they argue that bifurcating proceedings would not enhance efficiency or conserve court resources. This is because the issues related to the claim are closely linked with the proposed merger itself. The DoJ seeks additional time to respond in detail, in line with local rules or a court-ordered briefing schedule.
Investors appear to be reacting to these developments, which introduce uncertainty regarding the timeline and completion of the merger. The merger had been seen as a strategic move for UnitedHealth to expand its services in home health care through the acquisition of Amedisys. However, the heightened scrutiny under the Biden administration’s more stringent antitrust guidelines has raised questions about whether the deal will proceed as planned.
The FTC Chairman Andrew N. Ferguson’s announcement that the new merger guidelines are now operational indicates a more rigorous approach to antitrust enforcement. This could have broad implications for mergers and acquisitions within the healthcare sector, particularly for deals like the UnitedHealth-Amedisys merger that are already underway.
While the full impact of the FTC’s and DoJ’s analysis under the new guidelines remains to be seen, today’s stock movement reflects investor concern over the potential roadblocks to the merger’s completion. UnitedHealth’s proposed acquisition is a critical development for the company, and any delays or complications could have significant repercussions for its strategic direction and market position.
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