Abbey-Homedco Merger Clears Antitrust Hurdle

Abbey Healthcare Group Inc. and Homedco Group Inc. said Monday that their proposed merger has cleared federal antitrust regulations, taking them one step closer to creating one of the nation’s largest home-health-care companies.

Early last month, Abbey and Homedco agreed to swap their stock for new shares in a company that would have combined annual revenue of $1.1 billion.

Under the federal Hart-Scott-Rodino Act, companies planning a merger that may render an industry anti-competitive must notify the Federal Trade Commission and the Justice Department for review on antitrust grounds. Abbey and Homedco said neither agency has raised any objection or asked for further information and that the time period for doing so has expired.

The merger between Abbey in Costa Mesa and Homedco in Fountain Valley still must be approved by the Securities and Exchange Commission. That decision is expected later this month. In addition, shareholders of both Abbey and Homedco will meet in June to vote on the agreement.