LONDON (Alliance News) - The US's STERIS Corp's acquisition of London-listed Synergy Health PLC Friday cleared a major hurdle Friday, after the US District Court for the Northern District of Ohio denied the Federal Trade Commission's request for a preliminary injunction to block the takeover.
The FTC revealed earlier in the year it intended to block STERIS's proposed USD1.9 billion cash and share takeover of Synergy, as a result of concerns relating to competition in the market for contract radiation sterilisation services. This led the two companies to postpone shareholder meetings to vote on the takeover, and to extend the long stop-date for the completion of the deal.
Both had originally rescheduled the votes to Thursday. However, they now are rescheduling their meetings once more to allow for sufficient notice for Synergy's shareholders under UK law to October 2.
STERIS noted that as a result of the delay and the FTC review, the new combined company's legal expenses in connection to the deal are estimated to be increased by around GBP16 million, and finance expenses in connection to the deal may increased to up to GBP22 million.
"We are pleased that the court has agreed with our position, and we will be working to close the transaction with Steris Corporation as quickly as possible," said Chief Executive Officer of Synergy Health Richard Steeves in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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