French nursing home operator Korian said that it will acquire rival Medica for EUR1.1 billion (USD1.48 billion). The merger deal would create the largest elderly care group in Europe. 

According to Reuters, Medica's shareholders would receive ten Korian shares for every eleven Medica shares that they own. The deal would give a 15% premium to Medica's closing price of EUR20.03 on November 15. 

In a joint statement, the companies said that the post-merger entity will be better positioned to expand, more powerful to seize growth opportunities and more diversified to respond to changing industry regulations. 

The post-merger group would become the leader in France, Germany, and Belgium, and become number two in Italy, Reuters said. The group would also overtake rival Orpea, currently the market leader by revenue. 

The report said that the merger would create a company with a combined sales of EUR2.2 billion (USD2.96 million). It is forecasted that 60% of revenue would come from France, whilst the remaining 40% from Germany, Belgium and Italy. 

The merger group had a target revenue of EUR3 billion by 2017, Reuters said.