Sanofi's $3B Acquisition Of Provention Bio Hits Regulatory Roadblock: FTC Requests More Information
$PRVB
$SNY
Biotechnology: Pharmaceutical Preparations
Health Care
Biotechnology: Pharmaceutical Preparations
Health Care
- Sanofi SA (NASDAQ:SNY) withdrew and refiled the Premerger Notification and Report Form under the Hart-Scott-Rodino Antitrust Improvements Act “following informal discussions with the staff of the” Federal Trade Commission (FTC) regarding the acquisition of Provention Bio Inc (NASDAQ:PRVB).
- Sanofi agreed to acquire Provention Bio at $25 per share in a deal valued at $2.9 billion.
- The agency, it added, needed more time to look at the deal and “information recently provided to them,” Sanofi said in an SEC filing.
- In its disclosure, Sanofi added that “withdrawing and refiling premerger notifications is a standard procedure to provide additional time for antitrust review of certain transactions.”
- The move effectively reset the FTC’s 15-day preliminary review clock for a cash tender transaction, and the agency now has until the end of April 25 to decide.
- Hence, Sanofi is extending its offer to buy all of Provention’s shares by six days to the end of April 26.
- Following a deal announced on March 13, Sanofi filed its premerger report with the FTC on March 24.
- Despite the FTC hiccup, Sanofi said it still expects to close the deal in the second quarter of this year.
- Price Action: SNY shares are up 0.38% at $55.20 on the last check Tuesday.