U.S. says it will not fight Steris loss in district court

(Adds share price, background on court fight, quote from agency)

WASHINGTON, Oct (HKSE: 3366-OL.HK - news) 1 (Reuters) - U.S (Other OTC: UBGXF - news) . antitrust enforcers will not appeal a court ruling that said U.S. medical technology provider Steris Corp (NYSE: STE - news) could proceed with a merger with British sterilization services provider Synergy Health Plc (Other OTC: SYHEF - news) , a Federal Trade Commission spokesman said on Thursday.

The FTC filed a lawsuit in May aimed at stopping the proposed transaction, saying it would hurt customers by eliminating likely future competition based on new sterilization techniques. Last week a federal court in Ohio refused to block the $1.9 billion deal.

"The commission has decided not to appeal the district court's decision denying the preliminary injunction," FTC spokesman Peter Kaplan said in a statement.

Steris' share price rose from about $63.80 to above $65.

Steris announced the transaction in October, saying it wanted to expand its footprint in Europe. The plan is for Cleveland-based Steris to buy out UK-based Synergy Health, with the combined company managed from Ohio but incorporated in Britain. Such "inversion deals" can allow U.S. companies to get lower tax rates by reincorporating overseas.

Shareholders from both Steris and Synergy will hold meetings on Friday to vote on the proposed combination. (Reporting by Diane Bartz; Editing by Bill Trott)