- A US judge on Monday denied the Justice Department’s request for a halt United Health Group Inc UNH $13 billion buyout deal for Change Healthcare Inc CHANGE.
- The Justice Department filed a lawsuit in February aimed at stopping the acquisition on antitrust grounds.
- The deal was announced in January 2021 at $25.75 per share in cash and is expected to close in the second half of 2021.
- The judge dismissed claims that the deal would unlawfully suppress competition and limit innovation in health insurance markets.
- In April, UnitedHealth announced its plans to sell Change Healthcare’s claims and processing business to private equity firm TPG Capital for $2.2 billion, according to a SEC Filingto address antitrust concerns. The Justice Department considered the offer insufficient.
- Judge Carl Nichols said he would deny the government’s request to stop the deal and ordered the companies to proceed with the asset sales they proposed.
- Wall Street Journal writes that the court ruling represents an early blow to the Biden administration’s increased antitrust enforcement.
- The Justice Department’s chief antitrust officer, Jonathan Kanter, said the department disagreed with the decision and was considering its next steps.
- Price promotion: UNH shares closed at $523.55 on Monday. CHNG stock is up 7.38% to $27.35 during the premarket session last check Tuesday.
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