Merger Watch: APP Pharmaceuticals - Fresenius

| About: American Pharmaceutical (APPX)

APP Pharmaceuticals, Inc. (APPX) filed the definitive proxy statement for its merger with Fresenius with the SEC on Wednesday (August 20).

There are no material updates to the pending HSR review process, nor any specific closing or target closing dates disclosed in the final proxy. The proxy does note that the companies expect to complete the transaction before the end of Q1 2009, which represents the current termination date (March 31, 2009).

As discussed previously, the HSR review is currently not believed to be a major problem for this transaction, although there is certain some chance for additional delays if the companies fail to provide adequate information in the re-filed HSR notification. Again, there is some history of FTC interest in the product niches involved here, so a second request can not be completely disregarded as a possibility in this case. However, the information available suggests that no specific overlaps or real competitions issues are present for this combination, which indicates that a second request should be avoided.

Additionally, the GFCO still has not issued a decision in its review of this transaction.

Assuming FTC consent without a second request, this deal remains expected to close before the end of October 2008.

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