Brexit delays proposed £2bn Barchester takeover, report

The Brexit stalemate is delaying a proposed £2bn takeover of Barchester Healthcare, according to a news report.

The deal with Australian investment firm, Macquarie, which was revealed in February, (see Australian investment firm Macquarie eyes £2bn Barchester swoop, report), is being delayed by  concerns about Brexit and its impact on the pound, This is Money reported.

One investment banker commented: “The mergers and acquisitions market has been extremely quiet since the New Year and it’s mostly due to the failed Brexit negotiations and political uncertainty.”

Another source confirmed that Barchester was still in talks with Macquarie over a potential deal.

Barchester, which owns around 200 homes housing around 11,000 people, is believed to have attracted interest from a number of potential buyers. The operator is currently one of the most active developers of new care homes in the UK.

All four of the UK’s largest care home providers are believed to be looking for a new buyer.

Four Seasons is hoping to secure a deal for its care home operations after its holding companies went into administration last month (see BREAKING NEWS: Administrators appointed at Four Seasons holding companies). HC-One and Care UK are also believed to be seeking new buyers.

Barchester declined to comment on the report.