UNH - LHC Group gains on report FTC unlikely to challenge UnitedHealth deal

LHC Group ( NASDAQ: LHCG ) rose 1% on a report that the Federal Trade Commission is unlikely to challenge UnitedHealth's ( NYSE: UNH ) planned acquisition. UnitedHealth gained 2.1%.

The deal is not expected see a challenge from the FTC, according to a CTFN report, which cited sources. Legal arguments about vertical theories of harm are unlikely to be effective in any attempt to thwart the combination.

The latest update comes after a Capitol Forum report on Thursday that the FTC is looking at a potential vertical harm theory in its review of the deal. UnitedHealth ( UNH ) is said to have hired a lawyer who defended the company in its lawsuit against the FTC over its Change Healthcare acquisition.

The latest report follows other recent stories, including a CTFN report from earlier this month, that the transaction may get unconditional FTC clearance. Dealreporter also said earlier this month that no divestitures are expected in an FTC clearance and a timing agreement is set to expire in mid-February.

LHC ( LHCG ) last month extended the termination date for its sale to UnitedHealth to March 28 and said it expects the deal to close in Q1.The companies received a second request from the FTC in June related to the $5.4 billion deal.

UnitedHealth ( UNH ) agreed to buy home health business LHC Group for $170/share in late March.

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