Egyptian Competition Authority is gearing up to review the mega-merger between Cleopatra Hospitals Group (CHG) and Alameda Healthcare Group, chairman Mahmoud Momtaz said
CHG is set to hand over the details of its planned acquisition of 100% of Alameda to the ECA in a few days, and the regulator will appraise the potential economic return of the agreement before telegraphing its final position, Momtaz said.
The authority made a preliminary decision earlier this month to oppose the coming together of the two industry players, arguing it could negatively impact the sector.
The competition watchdog suggests there are “indicators” the merger could have a negative impact on Egypt’s healthcare industry, saying an initial study of the country’s private hospital landscape found that the merged entity would monopolize services in the Cairo-Giza area. The ECA also suggests that this scenario could give the company more power over the labor market and allow it to lower wages
