Sep 11 2008

Medi-Clinic hungry for more

Published by at 11:20 am under Companies

Stellenbosch-based private hospital group Medi-Clinic is on the acquisition trail (again, or still). Buying the Swiss private clinic chain Hirslanden for $2.5 billion at the end of last year, hasn’t satisfied the drive to internationalize.  

On 7 November last year Medi-Clinic said: “The Hirslanden group could act as a solid platform for future Swiss and European expansion, while the investment in Emirates Healthcare offered a platform for incremental growth in the Middle East, where a growing need for cost-effective quality private healthcare existed.”

Today the company gave some clues as to where the next action could “happen”. In an article in the Financial Times Deutschland Medi-Clinic board chairman Edwin Hertzog said Spain, Portugal, the Middle-east and South-America are interesting for acquisitions – Germany not. 

It was speculated before that Medi-Clinic might be on the verge of entering the difficult, but promising German market. 

Here a translation of the article as it appeared in the FTD on 11/9/2008:

Medi-Clinic shies away from German clinic market 

The South African private hospital group Medi-Clinic will not enter the German hospital market in the near future.

“Germany is presently not on our radar at all,” Medi-Clinic board chairman Edwin de la Hertzog told FTD. The market is too regulated and the entry barriers too high. But, interesting countries include Spain, or Portugal, the Middle-east and South-America.

Last year Medi-Clinic bought the Swiss private clinic chain Hirslanden, which resulted in speculation that Medi-Clinic might be poised to enter the German market.   

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