(Alliance News) - The UK Competition & Markets Authority on Friday said its initial investigation has found that UnitedHealth Group Inc's GBP1.2 billion deal to acquire Emis Group PLC could reduce competition in the UK health sector, "leading to worse outcomes for the NHS and ultimately patients and UK taxpayers".
As part of its phase 1 probe, the CMA found competition in the fields of population health management and medicines optimisation software would be hurt by the deal. Both Emis and UnitedHealth-owned Optum Health Solutions (UK) Ltd provide software services to GPs in the UK.
The CMA said it is concerned that, if the merger went ahead, Optum could choose to limited digital connections to data that is held by Emis, which it said would "unfairly undermine competing businesses", which would leave the NHS facing fewer options and higher prices or lower quality offerings.
Emis and UnitedHealth have until next week Friday to offer proposals to remedy the CMA's concerns, after which the CMA will have 5 days to consider whether its concerns have been addressed, or to refer the case to phase 2 investigation.
CMA Sernior MErgers Director Sorcha O'Carroll said: "This deal could see the NHS lose out on the benefits of competition, including innovation in these products and services and getting better value for money. UnitedHealth has the opportunity to address our concerns, otherwise it will progress to a more in-depth investigation."
Emis said: "Given the CMA's procedure for considering and accepting undertakings, Emis expects to be able to provide a further update on or around 31 March 2023, which is the statutory deadline for the CMA to determine whether the undertakings in lieu of a Phase 2 reference are acceptable in principle."
Emis added that it intends to "offer its full support" to Bordeaux UK Holdings II Limited, a UnitedHealth subsidiary and Optum affiliate, to obtain clearance for the acquisition.
Emis shares were flat at 1,818.00 pence each in London on Friday morning.
UnitedHealth shares closed up 1.4% to USD472.02 in New York on Thursday.
By Harvey Dorset, Alliance News reporter
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