seekingalpha.com —The deal spread in Globus Medical’s (NYSE:GMED) planned purchase of Nuvasive (NASDAQ:NUVA) narrowed amid a report that the companies appear optimistic about regulatory approval for the $3.1 billion deal. The parties outlook for Federal Trade Commission approval comes as the agency is expected to make a decision early next month, according to traders, who cited a Capitol Forum report that circulated on Friday. Although the regulator has considered putting the deal on a litigation track, it hasn’t done so.
The update comes after NuVasive (NUVA) earlier this month stuck with its guidance for the Q3 close amid a second request from the FTC.
“Given the recent M&A headlines, I’ve heard a lot of commentary about the FTC’s approach to deals generally, as well as speculation about what action the FTC will take in the new base of the Globus merger,” Chris Barry said on the company’s Q2 earnings call on Aug. 3. “While there’s a range of potential outcomes when the FTC is reviewing our transaction, we remain optimistic on a Q3 close.”
NuvaSive (NUVA) disclosed that on May 3, it received a second request from the FTC in regards to its sale to Globus Medical (GMED). There has been some speculation from investors that the FTC could try to block the deal as it has with others including Amgen’s (AMGN) planned $28 billion acquistions of Horizon Therapeutics (HZNP).
The regulator is said to have sped up of its review of the deal afer the parties responsed quickly to document requests, accoring to the Friday report.
SOURCE: https://seekingalpha.com/news/