UnitedHealth beats Justice Dept on $13 billion merger

UnitedHealth Group’s $13 billion acquisition of Change Healthcare will proceed, after a federal decide on Monday denied the Justice Division’s efforts to dam the deal on antitrust grounds.

Why it issues: It is a enormous win for UnitedHealth and maybe a good greater loss for the Biden administration.

Particulars: Decide Carl J. Nichols additionally ordered UnitedHealth to divest fee integrity group ClaimsXten to TPG Capital for $2.2 billion in money, as the corporate beforehand agreed to do.

Catch up fast: Regulators in February concluded that UnitedHealth’s buy of Change was anti-competitive, setting the stage for a several-day trial in August.

  • The DOJ alleged that the deal would give UHG entry to its rival well being insurers’ competitively delicate knowledge, plus unfair entry to any future innovation by Change.

Context: UnitedHealth has lengthy been referred to as an aggressive purchaser, however its M&A spree accelerated in 2022.

???? Our thought bubble: Whereas this can be a clear victory for UnitedHealth, it did take almost two years to get there. For those who’re one other multi-billion-dollar well being care firm seeking to get purchased (like Cano Well being, maybe), do you actually wish to wait that lengthy to get your deal accomplished? Is dependent upon the worth.

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