As the two firms continue to consolidate their portfolios, Abu Dhabi holding company ADQ is merging its health care operations with Alpha Dhabi's Pure Health Medical Supplies.
As a result of the merger, the UAE will have its largest healthcare provider.
The Abu Dhabi Health Services Company, also known as Seha, and the National Health Insurance Company, also known as Daman, would be merged into Pure Health as part of the purchase, Alpha Dhabi said in a statement to the Abu Dhabi Securities Exchange.
"With a strong focus on mixing technology and health care, this unique ecosystem delivers a scalable platform for international expansion, producing recognition and value for the nation and our investors," said Mohamed Al Rumaithi, chairman of Alpha Dhabi.
"In the future, Pure Health will actively pursue worldwide expansion prospects to diversify its portfolio and capitalise on its success in the UAE," says the company.
The demand for healthcare services has increased as a result of the coronavirus pandemic, and businesses are intending to meet this need by increasing their investments in diagnostics, testing, and other support services.
Pure Health will also acquire Tamouh Healthcare, Yas Clinic Group, and the Abu Dhabi Stem Cell Centre as part of its expansion plans.
After the agreement, which is subject to regulatory approvals, ADQ will become Pure Health's largest shareholder. Other shareholders include International Holding Company, AH Capital, and Ataa Financial Investments, in addition to Alpha Dhabi.
ADQ was founded in 2018 and has a portfolio of businesses in key non-oil sectors of Abu Dhabi's economy, such as tourism and hospitality, aviation, transportation, logistics, industrial, property, media, health care, financial services, and agricultural and food.
Abu Dhabi Power Corporation, Abu Dhabi Airports, Abu Dhabi Ports, Etihad Rail, Seha, Daman, Abu Dhabi National Exhibitions Company, and media businesses Abu Dhabi Media and twofour54 are among ADQ's portfolio companies.
"As we consolidate numerous enterprises onto the platform, Pure Health will be essential in altering the provision of health care," said Mohamed Alsuwaidi, CEO of ADQ.
"A scalable healthcare platform for growth will be developed by combining the capabilities of clinical powerhouses with the UAE's premier health insurer."
Alpha Dhabi, which was previously known as Trojan Holding and had a market value of Dh263.8 billion ($71.82 billion) as of Wednesday, has evolved into a regional conglomerate with holdings in construction, health care, hotels, and industry after completing a series of acquisitions in 2021.
It bought a 25.24 percent share in Al Qudra Holding earlier this week and increased its investment in Aldar Properties, Abu Dhabi's largest publicly traded developer, by buying an extra 17 percent. The transaction increases Alpha Dhabi's overall ownership in Aldar to 29.8%.
ADQ merged its healthcare businesses Rafed and Union71 with Pure Health last year to become a leading healthcare support services company.
International Holding Company has agreed to buy a 40% share in Response Plus Medical Services, a unit of VPS Healthcare, as well as other big healthcare agreements in 2021.
Yas Holding, located in Abu Dhabi, has bought a majority stake in Geltec Healthcare's Dubai operations for an unspecified sum.
In March, Amanat Holdings, a Dubai-based investment firm, purchased Cambridge Medical and Rehabilitation Centre for $232 million in one of the region's largest healthcare agreements.