McKesson Buys PSS World Medical, Dollar Thrifty & Hertz Again: Mergers and Acquisitions Update

McKesson Corporation (NYSE:MCK) purchases PSS World Medical (NASDAQ:PSSI) for the amount of $2.1 billion which includes debt. The $29-a-share bid marks a bonus of 34 percent over PSS’s Wednesday close. Shares of PSS are up around one-third at mid-afternoon on the news of the acquisition which values the firm at $1.46 billion. For its part, McKesson intends to join its medical surgical operations with those of PSS so as to provide medical supplies and other services and it projects yearly synergies of $100 million by the fourth year after the transaction closes. Meanwhile, shares of athenahealth (NASDAQ:ATHN) head downwards on the news as PSSI currently sells the former’s services to physicians. It seems that investors worry that the relationship might be negatively impacted over the long-term.

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Yes, this is still going on. A Federal Trade Commission division now wants to block the mergers between Dollar Thrifty Automotive Group (NYSE:DTG) and Hertz Global Holdings (NYSE:HTZ) for reasons not yet clear. The deal had finally been thought by analysts to have jumped through the few remaining hoops before nearing its finalization. Shares of both companies are currently down in reaction.

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