Primary Health Properties clears CMA hurdle on Assura merger

(Sharecast News) - Real estate investment firm Primary Health Properties said on Wednesday that the UK's Competition and Markets Authority had concluded its Phase 1 review of the company's proposed combination with Assura, raising no competition concerns. As a result, the CMA's requirement for the two businesses to remain financially and operationally separate, subject to certain derogations, was expected to end shortly.

Primary Health Properties said it will now focus fully on integrating the two businesses and delivering the expected benefits of the merger.

Chief executive Mark Davies said: "We are pleased with the decision announced by the CMA today that there are no competition concerns with this strategically important transaction and we appreciate the work done by the CMA team during their review. The management team can now focus on the integration of the two companies and is excited about the prospect and opportunity it will bring by creating a £6bn healthcare REIT owning, managing and investing in critical social infrastructure assets in a sector well placed to deliver growth.

"This earnings-accretive transaction, which has compelling strategic and financial benefits, will give PHP a lower cost of capital and a strong platform to accelerate our future expansion."

As of 0810 GMT, Primary Health Properties shares were up 0.62% at 94.23p.

Reporting by Iain Gilbert at Sharecast.com