The U.S. Justice Department has completed its review of a proposed merger that would combine San Francisco-based drug distributor McKesson Corp.'s tech business with Nashville-based tech firm Change Healthcare.
The two companies can now continue with the deal, though it's still subject to other customary closing conditions under the merger agreement. The companies expect to close the deal in the first half of 2017. The announcement marks the end of a legally mandated waiting period during which the Justice Department can ask for additional information regarding the merger, as it did in late August.
The merger, announced in June, combines nearly all of privately held Change Healthcare's business and the majority of McKesson's technology segment into a new company. McKesson would own about 70% of the company but has said it will eventually divest its stake after an initial public offering.
Change Healthcare stockholders include investment firms Blackstone Group and Hellman & Friedman.