Merger between eThekwini Hospital and Lenmed Health gets greenlight
The merger between eThekwini Hospital and Heart Centre, and Lenmed Health is set to go ahead after the Competition Commission approved the tie-up without conditions.
The commission concluded that the transaction did not raise any public interest concerns nor was it likely to prevent or lessen competition in the market for the provision of private hospital services.
Spokesman Sipho Ngwema said the commission found that the merged entity would have a low market share based on the number of beds owned and that the merged entity would continue to face competition from other larger hospital groups such as Netcare, Life Healthcare, JMH and Mediclinic, which operate in the Durban area.
"The proposed transaction is unlikely to have a negative impact on any of the public interest grounds identified ... no job losses are expected following the approval of the merger," said Ngwema.
Lenmed already owns a 40% equity stake in eThekwini Hospital, situated in Durban.
The Lenmed Group has an interest in about 1,383 beds in SA through nine hospitals located throughout the country.