U.S. gov’t shutdown again delays closing for Fresenius-NxStage merger

Fresenius (NYSE:FMS) said today that an interruption to the FTC’s review of its merger with NxStage Medical (NSDQ:NXTM), caused by the partial U.S. government shutdown, has again delayed the end-date of the deal which has now been extended to August 6, 2019.

The end-date is not hard-set, Fresenius said, and could occur on an earlier date if there have been 60 consecutive days of full funding for the FTC, according to an SEC filing.

Fresenius said that it already signed a consent decree proposed by the staff of the FTC, but that it remains to be approved by the FTC Commissioners. Under the terms of the deal, Fresenius would divest NxStage’s bloodlines biz to B. Braun to address issues raised by FTC staff, according to an SEC filing.

The tie-up, which was delayed by NxStage in October in light of the FTC investigation, has been in the works for nearly a year and a half, having originally been announced last August.

Fresenius said late last month that it was still awaiting FTC approval of the tie-up, and that it pushed the closing date to some time early this year.

The hoped-for closing date was pushed to February 5, 2019 in October, though at the time Fresenius was hopeful it could see the acquisition complete before the end of 2018.

Last July, the German renal care giant and NxStage extended the deal’s closing date by 90 days, from August 7 to Nov. 5, but said they still expected to close the deal that year.