Acquirer: Healthscope Limited; Target: Mayne Group Ltd

Acquirer(s)

  • Healthscope Limited

Target(s)

  • Mayne Group Ltd

Summary

Healthscope Ltd proposes to acquire 6 hospital businesses from Mayne Group Ltd. After considering a wide range of information, the Commission decided not to oppose this acquisition.

Market definition

The relevant markets are for the provision of private hospital services to patients and private health insurers in Canberra, Geelong, North Sydney, Southern Tasmania and Northern Tasmania.

Competition analysis

In North Sydney, Geelong, Canberra and Southern Tasmnaia there will be no change to the current market structure and Healthscope is merely replacing Mayne as a competitor in these markets. Hence, an SLC is unlikely. In Northern Tasmania, an SLC is unlikely because there are other significant competitors in the market, the oversupply of beds in Tasmania acts as an incentive to remain competitive and health funds will exercise some degree of countervailing power.

Merger type

Vertical

Guidelines thresholds

Below

Imports above 10%

N/A

Initiation

Press

ANZSIC code

8611