April 22, 2015 / 10:01 AM / 4 years ago

Fresenius CEO says to sit out healthcare deal wave

MUNICH, April 22 (Reuters) - German healthcare group Fresenius will lie in wait for an overheated healthcare deal market to cool down before making further larger acquisitions, its chief executive said.

“We have an intensive phase of takeovers, particularly in healthcare,” the German group’s Ulf Schneider told a media gathering late on Tuesday.

A wave of consolidation in the sector has included Teva’s $40 billion offer for smaller rival Mylan NV, AbbVie Inc’s proposed $21 billion purchase of Pharmacyclics, and Valeant Pharmaceuticals’ $11 billion deal for Salix Pharmaceuticals Ltd.

“Price levels have shot up exorbitantly... We have always steered clear of paying astronomical prices,” Schneider said.

“Opportunities won’t arise until the wave is followed by a hang-over,” he added.

In recent years, Fresenius bought 3 billion euros ($3.2 billion) worth of hospitals from Rhoen Klinikum and blood collection equipment company Fenwal for more than $1 billion, while separately listed subsidiary Fresenius Medical Care bought several medical services companies.

$1 = 0.9262 euros Reporting by Jens Hack; Writing by Ludwig Burger and Maria Sheahan; Editing by Kirsti Knolle

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