Synergy Health falls on speculation FTC to block tie-up with Steris

Shares in Synergy Health were registering sharp losses on speculation US authorities were about to block its proposed takeover by New York-listed rival Steris.

That came ahead of a US Federal Trade Commission hearing scheduled for later in the day.

Although the hearing was non-public, a report surfaced citing rumours that American competition authorities were preparing to sue to block the acquisition of the company.

The proposed tie-up was deep into the so-called Second Request review period at the FTC.

On 13 October 2014 Steris, which makes hospital sterilisation products, offered to purchase Synergy Health for approximately £1.2bn and relocate to the UK for tax purposes.

On 30 April Steris postponed a shareholder vote on the proposed deal until 11 June.

As of 08:55 shares in Synergy Health were lower by 8.83% to reach 1,973p.