Acquirer: Smith & Nephew plc; Target: Midland Medical Technologies Limited
Summary
Smith & Nephew, a global advanced medical devices company, proposes to acquire Midland Medical Technologies, a leader in metal-on-metal hip resurfacing products.
Outcome
Not Opposed
Date completed
19th March 2004
Merger type
Horizontal
Guidelines thresholds
Crossed
Imports about 10%
Yes
Market definition
Supply of surgical hip orthopaedic implants in Australia.
Competition analysis
The principal area of overlap between the parties is in relation to the supply of hip orthopaedic implants. The proposed acquisition will cross the Commission's concentration thresholds for the supply of hip orthopaedic implants on a national basis (merger party will have 15% share and the CR4 increases from 84% to 89%).
Some concern exists over the continuing aggregation of the hip orthopaedic implant market in Australia. However, it is apparent that a number of alternative suppliers remain post-acquisition, and these suppliers are large multinationals.
Accordingly, it was concluded the proposed acquisition is unlikely to result in a substantial lessening of competition in the surgical hip orthopaedic implant market.
