• Voter paralysis

    With so much tilting voters against change, democratic reason is the loser, says Solly Moeng.

  • The power of perseverance

    True grit is a reliable predictor of who will achieve success in life, says Ian Mann.

  • It's the system

    The system sucks and it’s being used far too often as an excuse, says Mandi Smallhorne.

All data is delayed
See More

Green light for Mediclinic mega-merger

Jan 27 2016 21:42
Dane McDonald

Cape Town – The Competition Tribunal on Wednesday approved the merger of SA’s biggest private hospital group Mediclinic [JSE:MDC] and Abu-Dhabi-based Al Noor Hospitals Group.

Stellenbosch-based Mediclinic listed its proposal to combine with Al Noor Hospitals Group in its 2015 annual report.

The hospital group was seeking to expand in countries where rising household incomes have led to growing demand for private healthcare.

“A combination with Al Noor would boost its operations in the United Arab Emirates, while it also owns hospitals in southern Africa and Switzerland,” a Bloomberg report said.

Earlier this week the Competition Commission recommended the approval of the merger “without conditions”.

Commission spokesperson Itumeleng Lesofe told Fin24 on Tuesday that the transaction raised neither “competition nor public interest concerns”.

“There is no geographical overlap in the activities of the merging parties, since Al Noor does not have a presence in South Africa,” Lesofe said.

Lesofe said the transaction would not change the structure of the SA market and that the commission had taken the view that the proposed merger was unlikely to substantially prevent or lessen competition.

“In terms of public interest issues, specifically employment, the commission found that Al Noor does not have any employees in South Africa.

“In the absence of any competition and public interest concerns as provisioned for in the Competition Act, the commission recommended that the merger be approved without conditions,” he said.

Al Noor operates three hospitals, 17 medical centres and clinics, and is primarily located in Abu Dhabi in the United Arab Emirates. Mediclinic has operating platforms in SA, Namibia, Switzerland, the UAE and a minority stake in a listed UK hospital group.

Comment by Mediclinic was unavailable at the time of publishing.

Mediclinic shares shed 0.81% to R122 by just before Wednesday’s close on the JSE.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.


Company Snapshot

We're talking about:


Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Would you take out a payday loan?

Previous results · Suggest a vote