Numis surprised by FTC's blocking of Synergy-Steris deal
Numis has suspended its rating on Synergy Health on news that it is contesting against a decision by US competition regulators to block its takeover by US rival Steris Corp.
FTSE 250
19,884.73
17:14 28/03/24
FTSE 350
4,383.21
17:14 28/03/24
FTSE All-Share
4,338.05
16:50 28/03/24
Health Care Equipment & Services
11,024.76
17:14 28/03/24
Synergy Health
2,325.00p
13:25 28/10/15
On 27 May, the Federal Trade Commission said it intended to oppose the proposed deal, while the competition authority was reportedly preparing to sue to block the acquisition of the company.
“[…]we are surprised by the FTC’s stance,” Numis analysts said, "perhaps further details could be forthcoming once the formal FTC announcement is published.
"In the absence of a deal, we believe that Synergy’s fundamental value is 1,500p-1,600p per share."
In October last year Steris offered to purchase Synergy Health for approximately £1.2bn and relocate to the UK for tax purposes, while on 30 April it postponed a shareholder vote on the deal until 11 June.
The two companies said on Friday that they would vigorously oppose the FTC's ruling and said the they welcomed a full judicial review of the competitive effects of the combination.