RHC has forged ahead with its plan to buy UK Spire Healthcare Group for $3.7bn upscaling the Australian business to a major player in the UK & Europe. The company has agreed to pay a 24.4% premium to takeover Spires’s stock, pretty standard these days – Spire’s main market is private patients which it services across 47 hospitals & private clinics. RHC still have to get the tick of approval from the UK Competition and Markets Authority but assuming the boards done their homework on the regulatory front, after operating in the UK for 15-years, it should get a green light.
The synergy benefits look exciting but the stocks unlikely to fully embrace the purchase until they are comfortable that all the bridges have been crossed with the powers that be, however we think this is a good move by RHC.
MM remains bullish RHC
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