South African private hospital group Mediclinic International is talks with Abu Dhabi-based rival Al Noor Hospital Group about a potential merger to create a market leader in Dubai and the United Arab Emirates.
Reuters reports that Mediclinic, which runs the largest hospital network in both South Africa and Switzerland, already has an exposure in the United Arab Emirates and in the UK, through a minority stake in Spire Healthcare plc.
“The Board believes that the potential combination could have strong strategic benefits and could deliver significant shareholder value,” Al Noor said in a statement, adding that the potential merger would be implemented via the issue of new shares and may be classified as a reverse takeover.
Mediclinic said it was in talks that might affect its shares but did not say whether it in discussion with Al-Noor.
Shares in Al Noor jumped 7.6 percent to 9.19 pence and Mediclinic added 3.26 percent to 117 rand.