Private healthcare group, Netcare, and Akeso Clinics, a group of 12 mental healthcare facilities, have announced that the Competition Tribunal, supported by the Competition Commission, has approved the acquisition of Akeso by Netcare. The proposed transaction, which was first announced on 21 November 2016, will therefore proceed as planned.
Akeso has 811 beds in facilities located throughout South Africa in areas such as Cape Town, George, Johannesburg, Pretoria, Nelspruit, Umhlanga and Pietermaritzburg. Netcare will make use of existing resources to fund the R1.3bn acquisition.
Commenting on the acquisition, Dr Richard Friedland, CEO of Netcare, said: “We are continuously exploring ways to improve our service offering to patients and have recognised the growing demand for mental healthcare services in South Africa.
“The Netcare Group is a leading provider of primary, secondary and tertiary private healthcare services in the country, but is largely under-represented in the mental healthcare field, as we do not currently have bespoke or dedicated mental health or psychiatric facilities in our portfolio.
“Akeso has an outstanding reputation, a well-respected and experienced management team, and an excellent patient-centred clinical programme. We therefore believe that the acquisition of Akeso provides a strong platform from which to expand our mental health services in South Africa,” addedFriedland.
Allan Sweidan, co-founder and MD of Akeso Clinics, said: “The acquisition by Netcare will enable an additional investment in what is already a successful model for the delivery of mental healthcare, while assisting Akeso to further expand our existing footprint. This is therefore a strategically important step for Akeso and we look forward to long-term growth resulting from our inclusion in the Netcare Group.”
The transaction was subject to various regulatory approvals, including the sanction of the Competition Tribunal. Following numerous constructive engagements, a joint proposal by Netcare, Akeso and the Competition Commission was presented to the Tribunal. This included that the proposed transaction be approved subject to certain conditions, including Netcare’s disposal of Netcare Rand and Netcare Bell Street hospitals.
Friedland assured staff, doctors and patients that Netcare Rand and Netcare Bell Street hospitals would continue to function as normal for the foreseeable future and that a process to dispose of the facilities would ensue.
“We are engaging with our staff at Netcare Rand and Netcare Bell Street hospitals and encourage them to remain fully focused on delivering quality patient care and excellent service. There will be job and employment continuity opportunities for all staff currently working at these facilities and we will engage with them to keep them fully appraised of all developments as they unfold,” he added.
Friedland said that Sweidan, will continue to manage the business within Netcare. “Allan and the Akeso management team have made an important contribution in establishing a multi-disciplinary approach to mental health and psychiatric care in South Africa and, strategically, is an ideal fit to complement the Netcare Group’s other businesses.”
[link url="http://www.netcare.co.za/Articles/ArticleID=650"]Netcare material[/link]