Al Noor Hospitals in merger talks with South Africa’s Mediclinic - Gulf Business
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Al Noor Hospitals in merger talks with South Africa’s Mediclinic

Al Noor Hospitals in merger talks with South Africa’s Mediclinic

The potential deal would involve the issue of new Al Noor shares and may be classified as a reverse takeover

Abu Dhabi-based hospital operator Al Noor said that it is in merger talks with South Africa-based healthcare chain Mediclinic International as it looks to expand its operations.

The potential deal would involve the issue of new Al Noor shares and may be classified as a reverse takeover, the Abu Dhabi group said.

“The board believes that the potential combination could have strong strategic benefits and could deliver significant shareholder value,” Al Noor said in a statement. But it also clarified that there was no certainty of the deal going through at the moment.

Mediclinic, which already has a presence in the United Arab Emirates, did not confirm whether it is in talks with Al Noor but said that it was involved in discussions that might affect its share price.

The deal could help expand Mediclinic’s presence in the UAE while helping Al Noor grow its network within the country.

Gulf’s healthcare firms are expanding rapidly as they look to cash in on the region’s healthcare boom.

Al Noor, one of the largest healthcare providers in the UAE, has been acquiring smaller targets to consolidate its operations and drive growth. Recently it acquired rehabilitation firm Rochester Wellness for an undisclosed sum.

The group said last year that it has set aside about Dhs 200m to fund its acquisitions in 2015. Al Noor has not specified any targets but said that it is looking out for more opportunities in the UAE and Gulf this year.

Earlier this year, Abu Dhabi-based NMC Healthcare acquired Americare Group and Sharjah-based Dr Sunny Healthcare Group. NMC has also signed an agreement to acquire ProVita International Medical Centre LLC for $160.6m.

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