The Virtus Health Ltd (ASX: VRT) share price spent most of today in the green despite its planned acquisition being faced with a new challenge.
However, today Virtus announced the Australian Competition and Consumer Commission (ACCC) is planning to stop the acquisition from being finalised.
Despite the apparent bad news, Virtus performed quite well on the ASX today.
As of Wednesday’s close, the Virtus share price is $5.47, 0.37% higher than Tuesday’s closing price.
For context, the S&P/ASX 200 Index (ASX: XJO) fell 0.07% today.
Let’s take a closer look at the new hurdle facing the healthcare company specialising in fertility treatments and day hospital services.
Virtus unfazed by ACCC roadblock
The Virtus share price gained today despite announcing seemingly unfortunate news.
The company has had its plans to acquire Adora Fertility and 3 day hospitals halted by the ACCC.
According to Virtus, the watchdog intends to seek an interim order from the Federal Court to prevent the acquisition’s completion despite the ACCC’s public review not being finalised.
However, Virtus is still planning to complete the acquisition. It said it will defend any proceedings.
The company also noted it has kept the ACCC in the loop throughout the acquisition process.
Virtus stated it has “constructively engaged” with the watchdog since it announced it would conduct a public review process of the acquisition
Virtus first announced its plans to acquire Adora Fertility and the 3 day hospitals back in August. It agreed to pay $45 million for the businesses. The funds were to come from a now-completed $35 million capital raise and existing cash reserves.
Virtus share price snapshot
Right now, the Virtus share price is around 3% higher than it was at the start of 2021. It is also 23% higher than it was this time last year.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Virtus Health Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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