The Competition Tribunal has approved the acquisition of Mediclinic by a consortium comprising its shareholder Remgro and Switzerland’s Mediterranean Shipping Company (MSC), with one of the conditions being that the company provide 1 000 pro-bono operations over the next five years.
Business Live reports that Remgro, an investment holding company chaired by Johann Rupert that owns 44.56% of Mediclinic, is entering into a 50:50 partnership with MSC to acquire the rest of Mediclinic.
Remgro, in partnership with MSC, made an offer of £3.7bn in 2022 to acquire the rest of Mediclinic and delist it from the JSE, a move that will cause the number of firms quoted on the bourse’s boards to be reduced to 301.
Before the sale of an SA firm is approved, Trade, Industry & Competition Minister Ebrahim Patel expects the buyers to agree to conditions that include increased investment, moratoriums on job cuts and the upliftment of small and black businesses.
The tribunal’s conditions include that Mediclinic provides at least 1 000 free operations at its facilities over the next five financial years to help the clear the backlog in the SA public healthcare sector.
Donate time
As private hospitals are legally prohibited from hiring doctors, the tribunal said the free operations will depend on doctors being available to conduct them.
It is unclear whether Mediclinic will expect private doctors to donate their time to help them adhere to the deal conditions, but the tribunal said the hospital group will “implement a programme … to engage with and encourage doctors to assist with pro bono surgeries”.
See more from MedicalBrief archives:
Remgro-Mediclinic bid raises conflict of interest concerns
Mediclinic and Remgro reach agreement on buyout offer
Johann Rupert group in Mediclinic takeover bid