ECA Disapproves Cleopatra Hospitals' Acquisition of Alameda

Ibrahim El-Seginy, Chairperson of the Egyptian Competition Authority (ECA) disapproved on Wednesday an initial decision to grant approval for Cleopatra Hospitals' acquisition of Alameda Healthcare Group.

The authority’s decision comes in light of its keenness to prevent monopolistic entities in the hospital market in Egypt, and the consequent harm to health care for the citizen.

ECA told the Minister of Health Hala Zayed in a report that the acquisition would raise the prices of medical services, reduce their quality, and weaken potential investment opportunities.

The deal to acquire Alameda, which owns four hospitals including Dar Al-Fouad, could be estimated at $500 million including debt.

The latest development comes following news earlier in February that the two giants were in talks over a merger deal. It was noted that the both were valued almost equally at around EGP 10 billion each, taking into perspective the aforementioned figures.

The proposed deal is expected to increase the value of Alameda's by 10% compared to Cleopatra Hospitals.

It is noteworthy that New York-based Guggenheim Investments was to act as financial advisor to Alameda Healthcare, while EFG Hermes for Cleopatra Hospitals.