One deal does not make a trend
publication date: Jul 29, 2009
It would be easy to read great significance into Credit Agricole's acquisition of a 42% stake in Proclif, the French private hospital group where Duke Street has a majority stake. Does this mean that French insurers are going to start buying up the hospital sector?
The answer would appear to be "no", according to Jean Sassus who follows French financials at brokers Raymond James. He says that big French insurers are unlikely to move into the sector and reckons the deal is effectively an equity investment. It is certainly very small beer for Credit Agricole. He says there is no track record of big French insurers buying into healthcare.
Others are less sure. A healthcare analyst suggested that, with interest rates so low and with the insurers very clear visibility of healthcare services the second half of 2009 might see more deals. But that might just be someone attempting to talk up the sector!
