Cairo – Mubasher: The Egyptian Competition Authority (ECA) issued an objection in principle to Cleopatra Hospitals Group’s (CHG) plan to acquire Alameda Healthcare Group.

The acquisition would result in a monopoly in the healthcare market in Egypt, the ECA said in a statement late on Wednesday.

Earlier, CHG signed an agreement for the acquisition of 100% of Alameda Healthcare Group’s assets in Egypt and was planning to pay for the deal by issuing convertible debt to Alameda’s shareholders.

The UAE company Alameda, owned and controlled by its Chairman, Fahad Khater, owns and operates through its subsidiaries a number of hospitals and medical units in Egypt, such as Dar El Fouad 6th of October, Dar El Fouad Nasr City, As-Salam International Hospital, and As Salam International Hospital Katameya in new Cairo which is expected to begin operations in H1-21.

During the first nine months of 2020, CHG logged net profits of EGP 182 million, up from EGP 169.9 million in the year-ago period, including minority shareholders’ rights.