Australia’s Morrison Cools on Potential $1.9 Billion Icon Takeover

(Bloomberg) -- HRL Morrison & Co.’s interest in a takeover of Australian oncology provider Icon Group is cooling, according to people familiar with the matter.

The infrastructure investor is no longer actively pursuing a deal for a controlling stake in Icon following disagreements over price, the people said, asking not to be identified because the information is private. Morrison was previously seen as a leading bidder for the business, which had also attracted interest from other investment firms including EQT AB, they said.

Bidders had been discussing a valuation of about A$2.5 billion ($1.9 billion), the people said.

A consortium including Goldman Sachs Group Inc.’s private investment arm, Australian pension manager QIC Ltd. and China’s Pagoda Investment acquired a majority stake in the company in 2017.

No final decisions have been made, Morrison could still come back to the negotiating table and others could pursue bids for the asset, the people said. A representative for Icon Group said negotiations are continuing and declined to comment further. Representatives for Goldman Sachs, QIC and Morrison declined to comment, while a representative for EQT couldn’t immediately comment. Pagoda Investment couldn’t immediately be reached by email or LinkedIn.

Founded in 2015, Icon Group has become Australia’s largest dedicated cancer treatment provider with more than 30 centers in the country, according to its website. It has operations in Singapore, China, Hong Kong and New Zealand. In February this year, the company opened its fourth center in China at Fenghuang Hospital in Fengcheng.

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