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Waiting period ends early for McKesson acquisition

SAN FRANCISCO (AP) -- The waiting period required before McKesson could acquire PSS World Medical has passed and the deal is expected to close in the upcoming first quarter.

McKesson Corp., based in San Francisco, said Wednesday that PSS World shareholders must still sign off on the buyout.

McKesson distributes prescription drugs and provides information technology services. PSS World makes and distributes medical products, with its business focused in the physician and laboratory markets.

McKesson said in October that it would pay $29 a share, or $1.46 billion, for PSS World Medical Inc. , which is based in Jacksonville, Fla. The share price represented a premium of more than 34 percent over the stock's closing price the day before the deal was announced. The company's stock closed at $28.49 Monday in the last trading before the holiday.

McKesson values the deal at $2.1 billion including PSS World's debt.

The waiting period was required under the Hart-Scott-Rodino Antitrust Improvements Act.