Abano in diagnostics merger talks

Abano Healthcare Group's diagnostic sector, Abano Diagnostics, is in talks about merging its Wellington community pathology practice and Sonic's Hutt Valley-based community practice.

Abano managing director Alan Clarke said a merger was being discussed after Capital and Coast and Hutt Valley District Health Boards indicated they would like to see a rationalisation of lab services in the region.

He said if the merger went ahead it would create the country's second largest single site community pathology practice.

Dr Peter Bethwaite from Wellington Pathology said the two practices were considering making a joint tender for the community services in the region to both the Hutt Valley and Capital Coast DHBs (district health boards) later this year.

"If the tender is accepted, then we will progress with the work of integrating our operations," he said.

A final decision on the merger will be made later this year. Both Abano and Sonic Healthcare would need to make capital investments to fit out premises for the merged entity.

Shares in Abano last traded Friday at $1.75, having ranged between $1.08 and $2.10 over the past 12 months.

- NZPA