Wesfarmers weighs Healthscope bid

Perth-based conglomerate Wesfarmers (WES) is mulling an entry into the heated auction for local hospital and pathology giant Healthscope, according to The Australian Financial Review.

Healthscope’s owners, TPG and The Carlyle Group, are currently running a dual-track sales process, with a trade sale and float both under consideration.

A strong field of suitors, including US-based Hospital Corp of America, Malaysia’s IHH Healthcare and China’s Shanghai Fosun Pharmaceutical, are believed likely to push the bidding for Healthscope to about $5 billion.

The AFR said that Wesfarmers was considering entering the race, though it may yet opt not to deliver a final proposal to TPG and Carlyle before the May 5 bid deadline.

The conglomerate has the cash for a large acquisition after selling its insurance broking and underwriting operations in recent months, though a move into the healthcare sector would be a change of direction for the largely retail-focused group.