Numis surprised by FTC's blocking of Synergy-Steris deal

Numis has suspended its rating on Synergy Health on news that it is contesting against a decision by US competition regulators to block its takeover by US rival Steris Corp.

On 27 May, the Federal Trade Commission said it intended to oppose the proposed deal, while the competition authority was reportedly preparing to sue to block the acquisition of the company.

“[…]we are surprised by the FTC’s stance,” Numis analysts said, "perhaps further details could be forthcoming once the formal FTC announcement is published.

"In the absence of a deal, we believe that Synergy’s fundamental value is 1,500p-1,600p per share."

In October last year Steris offered to purchase Synergy Health for approximately £1.2bn and relocate to the UK for tax purposes, while on 30 April it postponed a shareholder vote on the deal until 11 June.

The two companies said on Friday that they would vigorously oppose the FTC's ruling and said the they welcomed a full judicial review of the competitive effects of the combination.