ACCC to inquire into Ramsay / Affinity private hospital acquisition

The Australian Competition and Consumer Commission will examine the competition effects of an acquisition by Ramsay Health Care of Affinity Health's private hospital network.

"The ACCC has not made a decision to clear the transaction and is yet to undertake its market inquiries", ACCC Chairman, Mr Graeme Samuel, said today.

"However, to facilitate the transaction and to enable it to proceed, Ramsay and Affinity have provided undertakings to the ACCC. These will preserve the Affinity business as a separate and independently viable going concern until such time as the ACCC has completed its inquiries.

"Ramsay and Affinity have also undertaken to divest 14 hospitals in New South Wales, Victoria, Queensland and Western Australia back to some of the current investors in Affinity.

"Further, Ramsay has undertaken to divest any other hospitals in the Affinity or Ramsay businesses in order to address any competition concerns arising from the acquisition that are identified by the ACCC in its investigation", Mr Samuel said.

"In accepting the undertakings, the ACCC sought to balance the commercial and timing imperatives of the transaction with its need to fully retain its ability to address any competition concerns that might arise as a result of its market inquiries.

"The undertakings give the ACCC broad power, by way of divestiture, to address competition concerns arising from the transaction in any relevant markets for the provision of private hospital services throughout Australia.

"The ACCC will conduct market inquiries over the coming weeks and is encouraging market participants and other interested parties to make submissions on the competition effects of the transaction.

"The undertakings and a guide to making a submission to the ACCC will be made available on the ACCC's website shortly".