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Netcare's acquisition of Akeso Clinics approved by South Africa

Netcare Ltd. said its deal to acquire Akeso Clinics (Pty) Ltd, a group of mental healthcare facilities, received clearance from South Africa's competition authorities.

The Competition Tribunal of South Africa, with support from the Competition Commission, approved the 1.3-billion-rand deal, which will now proceed as planned.

To secure approval, healthcare facility operator Netcare agreed to certain concessions, including the sale of its Netcare Rand and Netcare Bell Street hospitals. The two hospitals will continue normal operations for now, and a sale process will ensue.

Allan Sweidan, co-founder and managing director of Akeso Clinics, will continue to manage the clinics as a unit of Netcare.

The company has recognized the growing demand for mental healthcare services in South Africa, said Netcare CEO and Executive Director Richard Friedland. Akeso offers treatment for disorders, post-natal depression, addiction and other general psychiatric disorders.

The deal was announced Nov. 21, 2016.

As of March 19, US$1 was equivalent to 12.04 South African rand.