Al Hammadi discontinues talks over potential merger with Care

Al Hammadi Company for Development and Investment decided to discontinue the discussions of the potential merger with the National Medical Care Company (Care), the firm said in a bourse filing on Sunday.

The Saudi-listed company attributed its decision to the potential change in the ownership structure of Care, which is based on the non-binding agreement that has been reached between the later and Hassana Investment Company, a subsidiary of the General Organization for Social Insurance (GOSI), to enter into a private sale transaction.

“This transaction has Hassana Investment Company and GOSI swapping their ownership in the National Medical Care Company, in return for shares in NMC Saudi Arabia Healthcare, a company owned by NMC Health PLC,” the filing added.

Consequently, Al Hammadi Company saw that the objectives of the merger would be incompatible with those of the private sale transaction.