KKR was overlooked as Assura shareholders approved the PHP offer
Primary Health Properties (PHP) has secured the takeover of NHS landlord Assura, following a 62.9% majority vote in favour of PHP's £1.8bn cash and share offer, which superseded a rival £1.7bn cash bid from a consortium led by KKR and Stonepeak[1][2]. Despite the shareholder approval, the merger faces scrutiny from the UK's Competition and Markets Authority (CMA), which is investigating potential antitrust ramifications[1].
The combined entity will control a property portfolio worth around £6 billion, including 600 healthcare buildings such as GP surgeries and pharmacies. This will make it the eighth largest London-listed REIT by market capitalization[1]. The CMA has temporarily blocked full integration of PHP and Assura during its review process due to potential antitrust concerns arising from the increased market concentration among NHS property landlords[1].
This deal marks a significant consolidation in the UK healthcare real estate sector, underlining the dominance of London-listed REITs over private equity in this space and potentially impacting the competitive dynamics in the UK healthcare property market[2][3]. The resignation of Assura’s chair shortly after the deal’s conclusion further highlights the significant governance changes resulting from the merger[4].
Initially, Assura's board had supported a £1.7bn all-cash bid from KKR, but later switched its support to PHP's merger proposal[1]. The vote was supported by 63% of Assura's shareholders[1]. The deal has been frozen by the CMA until the investigation is concluded[1].
Upon completion, the combined entity will become the largest listed healthcare landlord in the UK, with a strong presence in the sector. The outcome of the CMA's investigation will be closely watched for precedent-setting antitrust implications in the UK’s real estate investment trust (REIT) sector, particularly regarding NHS property ownership and competition[1][2].
| Aspect | Details | |---------------------------|-------------------------------------------------------------------------| | Current Status | PHP's £1.8bn bid approved by 62.9% shareholders, KKR's £1.7bn offer lapses. The CMA is reviewing the deal. | | Antitrust Ramifications | CMA reviewing to assess if the merger reduces competition significantly; integration blocked pending outcome. | | Impact on UK REIT Sector | Will create the 8th largest London-listed REIT by market cap, consolidating NHS healthcare properties under PHP. Signals preference for public market REIT deals over private equity in this sector. |
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