Bendigo Radiology - acquisition of Benson Medical Imaging
Type of assessment
Informal Review
Reference
25633
Acquirer(s)
Bendigo Radiology
Target(s)
Benson Medical Imaging
Industry
Radiology
Outcome of assessment
Not opposed
Total review days *
23
Commenced public review
27th October 2006
Date completed
28th November 2006
Market definition
The market for the provision of diagnostic imaging services (excluding nuclear medicine and MRI) to patients in the Bendigo region (excluding in-patients at public hospitals).
Competition analysis
The merged firm will supply all radiology services in the Bendigo region, either directly or indirectly. However, barriers to entry caused by lack of radiologists do not appear to be particularly high in this region, as demonstrated by Benson Medical Imaging's successful entry in 2000 and Bendigo Radiology Group's success in hiring two radiologists in the last 18 months. Further, it is likely that in the absence of the acquisition, Benson Medical Imaging would have ceased to exist and Bendigo Radiology Group would remain as the sole supplier of these service. Therefore, it is unlikely that the merger will lead to a substantial lessening of competition.
Review timeline
Date
Event
27th October 2006
ACCC commenced review under the Merger Review Process Guidelines.
3rd November 2006
Market inquiries commenced.
16th November 2006
Closing date for submissions from interested parties
22nd November 2006
Proposed date for announcement of ACCC's findings delayed to allow additional time for interested parties to provide submissions.
28th November 2006
ACCC announced that it would not oppose the acquisition.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
