The U.S. Federal Trade Commission said yesterday that it cleared Fresenius (NYSE:FMS) in its $2 billion acquisition of NxStage Medical (NSDQ:NXTM).
As part of the approval, NxStage will have to part ways with its bloodline tubing set business, offloading them to B. Braun, according to the regulatory agency.
The vote to approve the merger was split, however, with Republicans Joseph Simons, Noah Phillips and Christine Wilson voting to approve while Democrats Rohit Chopra and Rebeca Slaughter dissented.
The FTC said that it had previously filed a complaint suggesting that the merger would harm competition for bloodline tubing compatible with hemodialysis machines in the U.S.
Late last month, Fresenius said that an interruption to the FTC’s review of the merger, caused by the partial U.S. government shutdown, delayed the end-date of the deal which has now been extended to August 6, 2019.
The $30-per-share deal represents a 29.6% premium on last year’s August 4 closing price of $23.14 for NXTM shares.
Fresenius said it plans to fund the deal with cash and debt and expects Lawrence, Mass.-based NxStage to add to net income and earnings per share within three years of the deal’s close.
Shares in Fresenius have risen approximately 4% in pre-market trading today, at $39.89 as of 9:23 a.m. EST.
