Federal regulators green light $29.1 billion deal between Medco Health Solutions, Express ScriptsFederal regulators lent their approval to the proposed merger between Express Scripts Inc. and Medco Health Solutions, according to a published report.

Bloomberg reports regulators lent their approval to the deal recently, giving the green light to the two firms to move forward with the agreement, estimated at roughly $29.1 billion. Officials from the two companies said the larger market share would enable them to implement cost reduction initiatives, and they said customers would ultimately benefit as prices fall over the coming years.

The Federal Trade Commission voted in favor of the proposed deal this week, while officials from the two pharmacy benefit management services said they are looking to close the deal by the end of this year.

Mergers and acquisitions are poised to grow over the coming years as companies eye future growth, experts say. The proposed deal between Express Scripts and Medco Health Solutions is indicative of how large businesses are bolstering profit margins and cultivating future growth through buying competitors.

"It's pretty clear the view here is that in a world where we're focused on healthcare costs, it's good to try and negotiate lower prices," Barclays Capital analyst Larry Marsh noted.
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