The Federal Trade Commission (FTC) will reportedly not challenge UnitedHealth Group’s (NYSE: UNH) deal for LHC Group Inc. (Nasdaq: LHCG) after all.
Both companies stock rose Tuesday after that news surfaced from a CTFN report.
Just last week, LHC Group stock dropped after a report from Capitol Forum suggested that the FTC may be looking into vertical theories of harm pertaining to the deal. Those legal threats are now, apparently, off the table.
When and if the deal closes, LHC Group will be embedded into UnitedHealth Group’s subsidiary, Optum.
The Lafayette, Louisiana-based LHC Group is one of the largest home health providers in the country. Its 29,000 employees deliver home health, hospice, facility-based and home- and community-based care to patients in 37 states and the District of Columbia.
Prior to the vertical harm theory report, there was optimism that the deal would be completed in the first quarter with no conditions attached. LHC Group extended the termination date for its sale to March 28 last month.
Since the announcement of the deal in late March of 2022, UnitedHealth Group and LHC Group have received multiple requests from the FTC. The former has agreed to buy the latter for $170 per share.