Assura rejects KKR takeover bid in favor of competing offer from PHP

London, August 11, 2025 – UK healthcare property investor Assura has rejected a takeover bid from US private equity giant KKR, opting instead to support a rival proposal from Primary Health Properties (PHP), in a move that highlights intensifying competition in the sector amid economic pressures.

The announcement came on August 8, as Assura's board unanimously backed PHP's offer, valued at an undisclosed amount but described as superior in terms of strategic fit and shareholder value. KKR's approach, details of which were not publicly disclosed, was deemed inadequate, according to a company statement. This rejection follows a period of market volatility, with Assura's shares fluctuating amid broader concerns over interest rates and property valuations.

Facts reveal Assura manages over 600 healthcare facilities across the UK, with a portfolio worth approximately £3 billion. The proposed merger with PHP, a fellow FTSE 250-listed firm, aims to create a combined entity with enhanced scale, potentially managing assets exceeding £5 billion. This would strengthen their position in providing primary care infrastructure to the NHS, at a time when healthcare demand is rising due to an aging population.

"Assura's decision to snub KKR reflects a preference for a UK-based partnership that aligns with long-term goals," said Harry Turner, CEO of PHP, who highlighted synergies in cost savings and development pipelines. Assura Chairman Ed Smith added in the statement, "The PHP offer delivers immediate value and strategic advantages, unlike external bids that may disrupt operations."

Contextually, this news matters as the UK property sector faces headwinds from higher borrowing costs and regulatory scrutiny. With the Bank of England cutting rates to 4 percent recently, mergers like this could accelerate consolidation, helping firms navigate inflation and funding challenges. Analysts at Jefferies estimate the deal could yield annual synergies of £20-30 million through shared expertise and reduced overheads.

The rejection also underscores foreign investment scrutiny, with KKR's US origins potentially raising concerns over control of critical healthcare assets. If completed, the PHP merger would bolster domestic resilience, supporting government efforts to expand primary care amid budget constraints.

Market reaction saw Assura shares rise 2 percent in early trading, while KKR declined to comment further. Regulatory approval from the Competition and Markets Authority is expected within months, potentially reshaping the healthcare real estate landscape.