South Africa’s largest private hospital group Mediclinic announced on Monday It would buy nearly a third of UK’s second largest private hospital operators Spire Healthcare for about $700 million.
According to The Independent, some analysts see this as something that could enable nursing staff and clinicians from South Africa to work in British hospitals.
Mediclinic will take a 29.9 percent stake in its UK peer Spire Healthcare after it buys shares from its own largest shareholder and South Africa’s largest investment house, Remgro, an investment vehicle owned by South Africa’s richest family, the Ruperts.
With a government probe into private hospitals and a possible public health insurance plan limiting growth in South Africa, Mediclinic is looking increasing looking to diversify into other countries and Europe is turning out to be a lucrative market.
Reuters quoted Mediclinic Chief Executive, Danie Meintjes, saying he regarded Britain as a growth opportunity due to an ageing population and the fact private healthcare accounted for only about 6 percent of the market.
Mediclinic already owns hospitals in Switzerland and the United Arab Emirates.
The Independent reported that Mediclinic had said that it has no plans to launch a takeover for the whole of Spire, which rules it out of making an offer for at least six months under UK takeover rules, unless a third party makes an approach.
Analysts at Investec, however, said that the South African group could eventually return with an offer.
“This could be the first step towards complete takeover at some point in the future. In the meantime, Spire is likely to benefit from Mediclinic’s international expertise with potential for supply-chain benefits,” they told The Independent.