Acquirer: Baxter Healthcare Pty Ltd; Target: Hospital Supplies Australia Pty Ltd

Summary

Acquisition by Baxter Healthcare Pty Limited of the Cytomix business from Hospital Supplies of Australia Limited

Market definition

The national supply of cytotoxic compounds.

Competition analysis

The Commission considered that the relevant market was the national market for the supply of cytotoxic compounds.

The Panel considered that the acquisition would not substantially lessen competition in the relevant market because of the following factors:

- the acquisition did not exceed Merger Guideline thresholds;
- the existence of state-based private pharmacies which presently service the majority of private hospitals nation-wide;
- the relatively low barriers to entry or expansion that would be faced by cytotoxic compounders seeking to constrain any price increases by Baxter;
- the planned expansion by competitors to provide cytotoxic services and products nationally ; and
- countervailing power in the hands of major and specialist public hospitals arising from their presently existing in-house cytotoxic compounding facilities.

Merger type

Horizontal

Guidelines thresholds

Below

Imports above 10%

No

Initiation

Complaint

ANZSIC code

8639