UnitedHealth acquisition of EMIS gets provisional CMA clearance

11th Aug 2023 07:02

(Sharecast News) - UnitedHealth Group's acquisition of EMIS Group received a tentative regulatory go-ahead on Friday, with the Competition and Markets Authority provisionally clearing the deal.

On 17 June last year, Bordeaux UK Holdings II (Bidco) - associated with Optum Health Solutions UK and a direct subsidiary of UnitedHealth Group - reached a mutual agreement to acquire the full issued share capital of EMIS.

The acquisition process was taking place via a court-sanctioned scheme under the Companies Act.

EMIS confirmed on 9 August last year that, during the meetings held to evaluate the acquisition, all proposed resolutions had received the necessary majority approval.

Additionally, notifications made under the NS&I Act were acknowledged, with the Secretary of State asserting no additional actions would be required concerning the acquisition.

However, the acquisition caught the attention of the CMA, leading to a referral for an in-depth phase two investigation on 31 March.

Both EMIS and Bidco voiced their intention to actively participate and cooperate in this CMA investigation on 6 April.

On Friday, the CMA shared its preliminary findings from the examination, indicating a provisional green light for the acquisition.

While it was promising news for the deal, the CMA would still engage the public on its provisional results, leading to a conclusive decision by 5 October.

"Bidco and EMIS are pleased to announce that the CMA has provisionally cleared the acquisition," the company said in its statement on Friday.

"The CMA will now publicly consult on the provisional findings before reaching a final decision by 5 October.

"Bidco and EMIS expect to be able to provide a further update once the public consultation period has ended and the CMA has issued its final report."

Reporting by Josh White for Sharecast.com.