NMC Health has withdrawn its bid for rival United Arab Emirates-based healthcare provider Al Noor Hospitals due to valuation concerns, its vice chairman and chief executive told Reuters on Monday.

"The transaction is not going ahead because the valuation doesn't look near to our expectations," BR Shetty said.

"We're looking to invest the same money in the region for better returns for our shareholders," he added.

Earlier on Monday, Shetty had said the company had submitted an offer for Al Noor but would not negotiate on price, following a report in UAE newspaper The National which stated NMC Health may withdraw from the process on concern the firm will have to resort to raising "a lot of debt" or a rights issue to outbid rivals.

South Africa's Mediclinic agreed on October 14 to buy Al Noor, but NMC, along with UAE-based VPS Healthcare, also expressed interest.

"We have given our offer and that is it," Shetty said. "There will be no further negotiations as I don't want to over-trade," Shetty said earlier. - Reuters