Netcare’s R1.3bn deal with Akeso gets regulatory approval
The deal goes through on condition that the new owners do not hike fees immediately
The Competition Tribunal has finally given private hospital group Netcare the green light to acquire the Akeso psychiatric clinic chain, but has attached strict conditions that include guarantees that it will not immediately hike prices and will dispose of two of its hospitals. The development is significant because it offers consumers some protection from tariff hikes, which have typically occurred when large hospital groups acquire smaller ones, said Alex van den Heever, chair of social security systems administration and management studies at the University of the Witwatersrand. Small hospital groups usually have lower prices than the large JSE-listed hospital groups, but they typically do not merge with each other, he said. The three JSE-listed large hospital groups are Netcare, Mediclinic International and Life Healthcare. “Akeso has an outstanding reputation, a well-respected and experienced management team and an excellent patient-centred clinical programme. We therefore beli...
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