Mediclinic wins case for Klerksdorp hospital group

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Mediclinic wins case for Klerksdorp hospital group

Published Date: 2020-02-10 | Source: Stephen Gunnion | Author: Stephen Gunnion

Mediclinic wins case for Klerksdorp hospital group

After the Competition Tribunal upheld a recommendation that the takeover be prohibited, the matter was referred to the Competition Appeal Court.

Mediclinic has finally received approval to buy a controlling stake in Matlosana Medical Health Services, close to five years after it started the process. The private hospital group says the Competition Appeal Court has ruled in favour of the acquisition, which is expected to become effective around the middle of the year.

Klerksdorp-based Matlosana owns two multidisciplinary hospital, the 185-bed Wilmed park Hospital and the 62-bed Sunningdale Hospital. The deal also includes a 51% share in the 50-bed Parkmed Neuro Clinic psychiatric hospital. Matlosana is a privately owned holding company.

In 2017, the Competition Commission blocked the deal and recommended that the Competition Tribunal also prohibit it as it was likely to substantially reduce competition in Klerksdorp and the surrounding areas, enabling it to unilaterally raise prices. The Tribunal upheld the Commission's recommendation two years later.

Mediclinic's Southern African operations include 53 hospitals, five sub-acute hospital and 10 day clinics. It said the Matlosana transaction would expand its current offering in the North West Province.

Its shares rose 1.3% to R74.56 on Friday.





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