The Finnish Competition and Consumer Authority (FCCA) has recommended to the Finnish Market Court that it block Mehiläinen’s takeover of rival Pihlajalinna, reported Laing.
Last year private healthcare provider Mehiläinen, of which is 57% is owned by CVC Capital Partners, made a €361.9 million (US$424.5 million) recommended cash offer for rival Pihlajalinna.
It offered €16 (US$18.78)per share, which is a weighty 46% premium to the closing price of Pihlajalinna shares on November 4 last year.
“We regret that the FCCA has decided to propose to the market court to prohibit the transaction. We believe the remedies offered by Mehiläinen in the course of the review process were extensive in scope and addressed all competition concerns raised by the FCCA. We will now review the FCCA’s proposal in detail and thereafter decide, in consultation with Pihlajalinna, on the best way forward,” said Mehiläinen chief executive Janne-Olli Järvenpää.
Pihlajalinna’s board had unanimously recommended the deal and getting on for two-thirds of shareholders had said that they would accept the offer.
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