The proposed acquisition by DCA of MIA, announced by DCA on 7 June 2004, is likely to substantially lessen competition in radiology markets in Adelaide, ACCC Chairman, Mr Graeme Samuel, announced today.
"The ACCC is currently in discussions with DCA concerning appropriate remedies to overcome the competition concerns", Mr Samuel said.
"The ACCC considers it likely that, subject to receipt of structural undertakings to the ACCC's satisfaction, the ACCC's competition concerns can be resolved. The ACCC will only accept undertakings if they include satisfactory provision for radiologists to be employed at divested facilities and if DCA ensures that such facilities, and the businesses conducted there, are divested in the same condition as prior to DCA's acquisition of MIA. In order to assess any divestiture offer by DCA and ensure the transparency of its assessment process, the ACCC will conduct market inquiries regarding any proposed undertakings by DCA".
DCA proposes to purchase approximately 113 radiology facilities in South Australia, Tasmania, Victoria, Queensland, New South Wales, Northern Territory and the Australian Capital Territory from MIA.
Following market inquiries among private providers of radiology services, public hospitals, government authorities, radiologists and others, the ACCC considers that the proposed acquisition is likely to substantially lessen competition for the supply of MRI, nuclear medicine and other radiology services, excluding public hospital in-patients, in Adelaide. It may also substantially lessen competition in the regional area encompassing at least the mid-North Rural/Barossa, in breach of section 50 of the Trade Practices Act 1974.
"The ACCC is currently in discussions with DCA concerning appropriate remedies to overcome the competition concerns", Mr Samuel said.
"The ACCC considers it likely that, subject to receipt of structural undertakings to the ACCC's satisfaction, the ACCC's competition concerns can be resolved. The ACCC will only accept undertakings if they include satisfactory provision for radiologists to be employed at divested facilities and if DCA ensures that such facilities, and the businesses conducted there, are divested in the same condition as prior to DCA's acquisition of MIA. In order to assess any divestiture offer by DCA and ensure the transparency of its assessment process, the ACCC will conduct market inquiries regarding any proposed undertakings by DCA".
DCA proposes to purchase approximately 113 radiology facilities in South Australia, Tasmania, Victoria, Queensland, New South Wales, Northern Territory and the Australian Capital Territory from MIA.
Following market inquiries among private providers of radiology services, public hospitals, government authorities, radiologists and others, the ACCC considers that the proposed acquisition is likely to substantially lessen competition for the supply of MRI, nuclear medicine and other radiology services, excluding public hospital in-patients, in Adelaide. It may also substantially lessen competition in the regional area encompassing at least the mid-North Rural/Barossa, in breach of section 50 of the Trade Practices Act 1974.