The UK competition watchdog has launched an investigation into the proposed £1.79 billion takeover of NHS landlord Assura by rival healthcare property firm PHP (Primary Health Properties). The Competition and Markets Authority (CMA) announced on Friday it has begun a "phase one" investigation into the deal following a lengthy bidding war.
PHP put forward its fourth takeover offer for Assura last month after previously being outbid by a consortium led by US private equity firm KKR. The American firm had valued Assura at £1.7 billion, trumping PHP's earlier £1.68 billion bid made in May.
Bosses back billion-pound deal
Assura's leadership backed the increased £1.79 billion offer from PHP, arguing the combined scale of the merged business would benefit shareholders of both companies. The deal would unite the two largest UK healthcare real estate firms in a move that could reshape the sector.
The CMA said it is examining whether the takeover "may be expected to result in a substantial lessening of competition" in the healthcare sector. Companies and other parties potentially affected by the deal have two weeks to provide submissions to the regulator.
Scrutiny expected for major merger
Following the submission period, the CMA will decide whether the deal requires a more thorough phase two investigation. KKR had previously warned that combining the two largest UK healthcare real estate firms could attract regulatory scrutiny.
Assura owns more than 600 buildings across the UK, including doctors' surgeries, with a property portfolio valued at around £3.1 billion. The company employs approximately 80 staff members and serves as a major landlord to NHS facilities nationwide.
(PA) Note: This article has been edited with the help of Artificial Intelligence.
