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Home / NY: UnitedHealth Wins OK to buy Smaller RivalNY: UnitedHealth Wins OK to buy Smaller Rival
Last Updated on Monday, 3 March 2008 11:24 Written by rslcpol Monday, 3 March 2008 11:24
WASHINGTON—UnitedHealth Group Inc. has won approval of its $2.6 billion acquisition of Sierra Health Services Inc. by agreeing to divest a relatively small portion of its business, but future transactions of this size may be problematic due to antitrust issues, health care experts say.
Federal regulators have shown a willingness to force the sale of assets to ensure continued competition in key markets that the Minnetonka, Minn.-based company enters via acquisitions. But the most recent divestiture was insufficient to quell opposition to the Sierra purchase by provider groups concerned about UnitedHealth’s market share in the Las Vegas area.