Healthcare facilities investor Primary Health Properties (PHP) has unveiled plans to merge with sector peer MedicX (MXF), although it really plays out as a takeover of the latter business.

By combining these two funds, which own and let community healthcare facilities (particularly GP surgeries) in the UK and Ireland, the enlarged business could theoretically reap the benefits of scale and MedicX shareholders could feasibly get more generous dividends than they have received in the past.

‘MedicX has a highly complementary portfolio of healthcare centres, which will easily be subsumed into PHP’s existing management structures,’ says Stifel analyst John Cahill. ‘Cost savings will total circa £4m per year (£3m per year released immediately, £1m per year post operational merger).’

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