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UnitedHealth's Optum, DaVita agree to cut price of medical group deal

UnitedHealth Group Inc.'s Optum and DaVita Inc. have agreed to cut the sale price of DaVita Medical Group to $4.34 billion.

Optum was initially slated to pay $4.90 billion for the business, which will be combined with its OptumCare division. But Optum and DaVita have agreed to amend their equity purchase agreement to lower the sale price due to underlying business performance and in order to acquire the Federal Trade Commission's approval.

The FTC approval is the final remaining regulatory approval necessary to close the transaction. On Nov. 28, the California Department of Managed Health Care approved the proposed transaction. The companies expect to close the transaction in the first quarter of 2019.

As a result of the change in sale price, DaVita expects to record a charge in the fourth quarter of about $200 million to $250 million.