Sonic Healthcare Abandons Healthscope Takeover

Radiology and pathology serve provider, Sonic Healthcare (ASX:SHL) have announced that it will abandon its takeover of Healthscope (ASX:HSP).

• The takeover was dumped as it was taking too long for regulators to approve the deal.
• Sonic Healthcare shares fell 36 cents or 3 percent per share to close $12.88.
• Sonic Healthcare will continue to pursue Healthscope's pathology business in Queensland and Western Australia which would be worth up to $47 million.
• Sonic Healthcare CEO Colin Goldschmidt said, "We are disappointed that we had to abandon the sale of the pathology business in NSW and ACT because of the protracted delay in the approval process by the ACCC. The uncertainty over whether the business will be sold creates unnecessary uncertainty and instability for staff and operations. It has been four months since both parties signed an agreement for Sonic to purchase the business."
• "The CEO hoped that by abandoning the acquisition of the NSW and Queensland business it would help to get the ACCC (Australian Competition and Consumer Commission) approval.
• "The size of the business in Queensland and WA is much smaller. WA's pathology market is also more fragmented. By withdrawing from the NSW-ACT sale we stand a higher chance that the Queensland and WA deal will go through"
• Sonic full year results 2012 to June 30.