Britain’s competition watchdog said on Friday it would launch a Phase 2 investigation into UnitedHealth Group’s acquisition of healthcare technology company EMIS for £1.24bn ($1.54bn).
The Competition and Markets Authority (CMA) said it had rejected a remedy proposed by US firm UnitedHealth, saying it did not go far enough to mitigate the potential impact of the combination on competition.
The proposed remedy was to sell Optum UK’s national population health management and medication optimization businesses, part of UnitedHealth.
EMIS said the merging parties did not agree with the decision and were considering next steps.
“We are disappointed with the CMA’s decision and continue to believe that the proposed remedy directly addresses the competition concerns raised by the CMA in its Phase 1 investigation,” the company said.
“Optum UK and EMIS are currently considering their options and will provide an update on the acquisition in due course.
UnitedHealth unveiled a proposed acquisition of EMIS in July, with the aim of positioning the combined entity to better serve Britain’s National Health Service (NHS).
The CMA launched its initial investigation into the merger in January and warned the parties in early March that it would subject the deal to further scrutiny if they did not offer acceptable remedies.
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