Sanofi's $3B Acquisition Of Provention Bio Hits Regulatory Roadblock: FTC Requests More Information

Sanofi SA SNY withdrew and refiled the Premerger Notification and Report Form under the Hart-Scott-Rodino Antitrust Improvements Act “following informal discussions with the staff of the” Federal Trade Commission (FTC) regarding the acquisition of Provention Bio Inc PRVB.
Sanofi agreed to acquire Provention Bio at $25 per share in a deal valued at $2.9 billion.
The agency, it added, needed more time to look at the deal and “information recently provided to them,” Sanofi said in an SEC filing.
In its disclosure, Sanofi added that “withdrawing and refiling premerger notifications is a standard procedure to provide additional time for antitrust review of certain transactions.”
The move effectively reset the FTC’s 15-day preliminary review clock for a cash tender transaction, and the agency now has until the end of April 25 to decide.
Hence, Sanofi is extending its offer to buy all of Provention’s shares by six days to the end of April 26.
Following a deal announced on March 13, Sanofi filed its premerger report with the FTC on March 24.
Despite the FTC hiccup, Sanofi said it still expects to close the deal in the second quarter of this year.
Price Action: SNY shares are up 0.38% at $55.20 on the last check Tuesday.