UK competition watchdog investigates NHS landlord Assura takeover
- The UK Competition and Markets Authority has launched an investigation into the proposed takeover of Assura.
- The deal involves PHP’s bid of £1.79 billion to acquire Assura, which currently manages over 600 healthcare properties.
- The investigation raises concerns about potential competition reduction in the healthcare sector.
In the UK, the Competition and Markets Authority (CMA) has initiated a review of the proposed acquisition of the healthcare property firm Assura. This investigation comes after PHP, a competitor in the healthcare sector, submitted a bid valued at £1.79 billion, which Assura has expressed support for. This deal follows PHP's earlier offer of £1.68 billion that was surpassed by a consortium led by the US private equity firm KKR with a valuation of £1.7 billion. The CMA's phase one investigation seeks to assess the potential implications on market competition stemming from the merger of two major UK healthcare real estate firms. The regulator has provided a two-week window for impacted companies and stakeholders to submit information regarding the deal. The CMA's focus is on whether this acquisition could lead to a substantial reduction in competition within the healthcare industry. Following the submissions, the CMA will determine if a more comprehensive phase two investigation is warranted based on their initial findings. The scrutiny around the acquisition reflects concerns about market consolidation and the implications for healthcare services and property management across the UK. Assura currently manages over 600 properties, which include medical facilities and surgeries, with a portfolio valued at approximately £3.1 billion. The company employs around 80 staff and plays a vital role in the healthcare property market. The potential takeover by PHP not only aims to enhance the scale of operations but also to create shareholder value by combining resources and portfolios. However, the CMA's scrutiny indicates the regulatory body's commitment to maintaining competitive market dynamics in the healthcare sector, especially given the essential services these firms provide. As the situation develops, the outcome of the CMA's investigation could have significant implications for both companies and their stakeholders. If the acquisition is deemed harmful to competition, it could lead to the deal being blocked or subjected to rigorous conditions before approval. This is a crucial moment for the UK healthcare property sector, as it may redefine the landscape of healthcare real estate management in the country, ensuring that market dynamics remain favorable for consumers and healthcare providers alike.