Australia's Healius takeover bid unlikely to get ACCC nod, says brokerage Jefferies

Australian Clinical Labs

20/03/2023 19:54

** Takeover offer for medical centre operator Healius Ltd
 HLS.AX  unlikely to be approved by Australian Competition and
Consumer Commission (ACCC) - brokerage Jefferies
    ** One of the country's largest pathology services provider
Australian Clinical Labs Ltd  ACL.AX  on Monday offered to buy
Healius, valuing it at A$1.52 bln ($1.02 bln)
    ** HLS and ACL are already number 1 or 2 in all Australian
states, and with merger it will have the largest market shares
in all states except Tasmania, with 40% to 82% share of
pathology collection centres per state - brokerage
    ** "Hence, we believe this iteration of a merger is unlikely
to be approved, and if ultimately approved will require large
divestments" - Jefferies
    ** Brokerage upgrades HLS shares to "hold" from
"underperform" on recent share price performance, maintains PT
of A$2.60
    ** Healius shares down ~2% this year, as of last close

 ($1 = 1.4888 Australian dollars)

 (Reporting by Ayushman Ojha in Bengaluru)
 ((ayushman.ojha@thomsonreuters.com))