The Department of Justice has asked for additional information from drug distributor McKesson Corp. and tech firm Change Healthcare regarding the companies' proposed merger, both firms said Tuesday.
The so-called “second request” was received by McKesson on Aug. 31, the companies said in regulatory filings. McKesson and Change will respond “as quickly as practicable and continue to work cooperatively with the DOJ staff,” according to a statement.
San Francisco-based McKesson announced in June that it would merge the majority of its technology business with nearly all of the holdings of Change Healthcare, a Blackstone Group-owned provider of revenue-cycle management, data network and analytics services. After an initial public offering of the merged company, McKesson has said it plans to divest it 70% stake in the venture, effectively getting rid of nearly all of its technology business, which has repeatedly been a drag on profits.
A second request for information is often made by federal regulators if an initial review raises some competition issues, but it's unclear what specific information was requested by the DOJ or what prompted this specific request. The DOJ was not immediately available for comment.
The companies said they continue to expect the deal to be completed in the first half of 2017.
