This review related to a new proposed acquisition, limited to the ACT and Southern Tablelands. In the previous review undertaken, the ACCC considered a number of relevant aspects of the pathology sector, including in the ACT and Southern Tablelands area. The ACCC therefore undertook targeted market inquiries only.
Outcome of assessment
Not opposed
Total review days *
21
Commenced public review
2nd January 2013
Date completed
31st January 2013
Market definition
The ACCC considered the proposed acquisition in the context of the NSW / ACT market for the supply of community pathology services. In conducting its assessment, the ACCC noted that there are areas of closer competition on a narrower geographic basis and considered it appropriate to assess the competitive effects of the proposed acquisition primarily in the ACT / Southern Tablelands region, since pathology providers active elsewhere in the NSW / ACT market provide a much weaker competitive constraint on the region.
Competition analysis
The ACCC concluded that the proposed acquisition was unlikely to substantially lessen competition in the market for the supply of community pathology services in the ACT / Southern Tablelands for the following reasons:
- Sonic will continue to be constrained by Primary and the public provider, ACT Pathology.
- ACT Pathology has a significant presence and has a policy always to bulk bill.
- There is the potential for Primary to expand its presence in the ACT if Sonic were to substantially increase price or reduce service levels.
- Healthscope does not appear likely to impose a strong competitive constraint in this area in the future absent the proposed acquisition.
Review timeline
Date
Event
2nd January 2013
ACCC commenced review under the Merger Review Process Guidelines.
31st January 2013
ACCC announced it would not oppose the proposed acquisition.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
