German Giant Swoops For Bupa Homecare Unit

A German healthcare giant which is a big supplier to the NHS is in talks to buy the division of Bupa which looks after thousands of elderly residents in their homes.

Sky News has learnt that Celesio (Other OTC: CAKFF - news) has entered exclusive negotiations about the purchase of Bupa Home Healthcare.

Sources said on Friday that a deal could be wrapped up within weeks, expanding Celesio's presence in the UK and providing Bupa with an exit from one of its most troublesome businesses.

The German company is best known in Britain for its ownership of Lloyds Pharmacy, one of the country's biggest chains of chemists.

Celesio's plan to purchase Sainsbury (Amsterdam: SJ6.AS - news) 's pharmacy business, unveiled last summer, is the subject of an in-depth probe by the Competition and Markets Authority.

Its takeover of Bupa Home Healthcare would, if completed, be unlikely to raise similar competition issues, according to analysts.

Celesio also owns AAH Pharmaceuticals, a major medicines supplier, and Betterlife, an online retailer of mobility and independent living aids.

The business, which has been operating since 1975, treated more than 30,000 patients in their homes last year, Bupa says.

However, it has been affected by public funding cuts, forcing Bupa to write down the value of the business by more than £30m in 2014.

Bupa has been working on a sale of the business for several months, having hired corporate financiers at KPMG last September.

Home Healthcare is not the only operation for which Bupa is exploring options: it is also examining the disposal of hundreds of care homes it owns.

Bupa declined to comment.