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February 25, 2022

US regulator moves to block UnitedHealth’s $13bn acquisition of Change Healthcare

US regulator has filed a civil lawsuit to block UnitedHealth Group’s $13bn acquisition of Change Healthcare.

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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
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by GlobalData
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The lawsuit filed by the Department of Justice, together with Attorneys General in Minnesota and New York, argues that the deal would harm competition in the commercial health insurance market.

It will also impact the market for technology used by health insurance firms to process claims and reduce costs, the regulator said.

In January 2021, United announced plans to buy healthcare technology provider Change via Optum.

38 of the 40 leading health insurers in the US use Change’s and United’s first-pass claims editing solutions and if the deal materialises, the firms will collectively control nearly 75% of the market, the DOJ said in its complaint.

The regulator alleged that United understands that through the acquisition, it will be able to access the proprietary plan and payment rules of rival health insurers such as Humana, Anthem, CVS Health Corp’s Aetna and Cigna.

DOJ Antitrust Division Principal Deputy Assistant Attorney General Doha Mekki said: “The proposed transaction threatens an inflexion point in the health care industry by giving United control of a critical data highway through which about half of all Americans’ health insurance claims pass each year.

“Unless the deal is blocked, United stands to see and potentially use its health insurance rivals’ competitively sensitive information for its own business purposes and control these competitors’ access to innovations in vital health care technology.”

Responding to the lawsuit, UnitedHealth said it would appeal against it. “The Department’s deeply flawed position is based on highly speculative theories that do not reflect the realities of the healthcare system. We will defend our case vigorously,” it said in a statement.

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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