(Alliance News) - UnitedHealth Group Inc's buy of London-listed healthcare software and services provider Emis Group PLC has been provisionally cleared by the UK's competition watchdog.
The UK Competition & Markets Authority said it found no competition concerns regarding UnitedHealth's subsidiary Optum UK buying Emis, with a final decision due early October.
Optum UK said after the announcement by the CMA: "We welcome the CMA's provisional findings from its phase II investigation of Optum UK's proposed acquisition of EMIS and will continue to engage cooperatively with the CMA until its investigation concludes. We remain focused on supporting the long-term success of the NHS. Our aim is to help make the UK health care system work better for GPs and patients alike."
Emis shares jumped 25% to 1,910.32 pence each on Friday morning in London. UnitedHealth shares closed up 0.3% at USD503.48 each on Thursday in New York.
It explained that Optum, part of US healthcare firm UnitedHealth, currently supplies software used by general practitioners when prescribing medicines, as well as data analytics and advisory services that the NHS uses to help improve overall healthcare and health service provision.
The CMA said: "While the merging businesses do not supply competing services, Optum and its competitors use the data that Emis holds and integrate their own software with Emis's electronic patient record system to compete in other markets, including the supply of population health management services and medicines optimisation software."
The competition watchdog added that Emis, as the lead supplier to NHS GPs in the UK, "holds a particularly strong market position in the supply of electronic patient record systems but, further evidence-gathering and analysis found the combination of this position with Optum's activities should not present competition concerns."
Kirstin Baker, chair of the independent inquiry panel that carried out the investigation, said: "We want to ensure the NHS continues to benefit from innovation and efficiencies brought about by technology services competing for its business. After carefully considering a broad range of evidence, we have provisionally found that this deal is not expected to harm competition or adversely affect patients."
The CMA's phase 1 probe had found "initial concerns" that the GBP1.24 billion takeover, which was agreed in June last year, would bring competition worries.
The CMA will report a final decision on October 5, with interested parties able to contact the CMA regarding the proposed merger until September 1.
Back in May this year, when issuing its 2022 results, Emis said it expected the takeover to become effective in the final quarter of 2023 or the first quarter of 2024.
By Tom Budszus, Alliance News reporter
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