FTC Appears Closer to Approving Express/Medco Merger (MHS, ESRX)

MedcoHealth Solutions Inc. (NYSE: MHS) and Express Scripts, Inc. (NASDAQ: ESRX) are both trading higher on hopes that the merger between the two companies may actually receive FTC and other approvals to be allowed.  While the formal decision may be weeks to months out from now, the prevailing trend ahead of today has been that the merger was more and more likely to be blocked.  Ultimately, this is a decision that will come at any time in the future and trying to predict the FTC and other agencies in today’s climate can be tricky.  This is not like the Bush years where every single merger was rubber-stamped.

The trading has sort of morphed into a rumor but the news is from a report circulating that FTC attorneys are not as against the merger as many had speculated on in prior weeks and that they seem in favor of recommending that the merger be approved.

MedcoHealth Solutions Inc. (NYSE: MHS) is trading up 4.3% at $66.91 and trading volume of 9.3 million shares is now already 200% of normal trading volume.  Express Scripts, Inc. (NASDAQ: ESRX) is up 1.4% at $53.15 on more than 9 million shares (close to 140% of normal trading volume).