Healius Limited (ASX:HLS) is understood to have been eyeing its rival Integral Diagnostics Limited (ASX:IDX) of late for a buyout. It comes as part of its plans to become a serious contender in the pathology and diagnostic imaging arena. However, sources say that while Integral has been of interest, the share price changes in both stocks makes a deal difficult for Healius right now, and it is expected to keep a watching brief should the situation change.

The Healius share price has fallen since the start of the year, and while Integral's share price is down from the start of the year, it needs to fall further for a deal to make sense. Healius earlier told the market that it has the capital flexibility to pursue acquisitive growth and was cashed up after selling its medical centre unit in 2020 to BGH Capital for $500 million. Healius is believed to be keeping a close watch on Integral as it looks to sell its day surgery business through advisory firm Gresham.

It recently sold its Adora fertility unit. But shareholders did not back the offer, which required a 90% take-up rate.