The Australian Competition and Consumer Commission will not oppose Healthscope Limited's proposed merger with Symbion Health Limited after accepting an undertaking from Healthscope to divest a number of pathology businesses in the north-eastern and Gippsland regions of Victoria.
"The proposed acquisition, after taking account of the undertaking, is unlikely to substantially lessen competition under section 50 of the Trade Practices Act," ACCC Chairman, Mr Graeme Samuel, said.
"Competition concerns arose in regions within Victoria where the merged entity would be the sole or dominant provider of community pathology services; namely north-eastern Victoria and Gippsland," he said. "However, Healthscope has undertaken to divest the Gippsland pathology business, Benalla pathology business and Albury pathology business that are operated by Symbion and the Wangaratta pathology business operated by Healthscope, as part of the proposed acquisition."
The undertaking requires that Healthscope sells the divestiture business to a purchaser approved by the ACCC. The undertaking also requires Healthscope to preserve the divestiture business as a separate, fully operational and competitive going concern that is maintained and independently managed until it is sold.
"After extensive market inquiries on the impact of the proposed acquisition on competition in the relevant market and the effectiveness of the undertaking to address the ACCC's competition concerns, the ACCC was satisfied that the undertaking provides for the divestment by Healthscope of sufficient assets to enable a purchaser of those assets to compete effectively in the relevant market."
Healthscope's undertaking will appear on the ACCC's public register shortly. The ACCC will also issue a Public Competition Assessment on its decision which will be available on the ACCC website, under Mergers.