Arris is confident that it will close its proposed $2.1 billion merger with U.K.-based Pace plc, but now believes it won’t be able to seal the deal until “late December or the first quarter of 2016” amid additional requests from the U.S. Department of Justice and other regulatory bodies that might create conditions that would require the companies to divest part of their business.
Arris and Pace have long expected to wrap up the deal by year end, but Arris said Friday (October 16) that the companies have received requests for additional information from the Antitrust Division of the U.S. DoJ as well as regulators in Brazil and Columbia. The DoJ put in its original request for more data from Arris and Pace in June.
Arris said the Antitrust Division’s current focus “appears to be on certain optical transmission products of Arris and Pace,” adding that it it’s possible, as a condition to the approvals, that “the governmental agencies may impose requirements, conditions or limitations on ARRIS business after the completion of the transaction which may include a divestiture.”
Such a condition or requirement, Arris said, “could further delay the completion of the transaction could further delay the completion of the transaction or reduce the anticipated benefits of the combination.”
Full content: The Wall Street Journal
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