Acquirer: Queensland X-Ray Services; Target: Southside Diagnostics Group Radiology

Acquirer(s)

  • Queensland X-Ray Services

Target(s)

  • Southside Diagnostics Group Radiology

Summary

Queensland X-Ray (a wholly owned subsidiary of Sonic Healthcare Limited) proposes to acquire Southside Diagnostic Services Radiology

Market definition

The market for the provision of diagnostic imaging services, excluding services to bulk billed public hospital in-patients, in the Sunshine Coast area.

Competition analysis

The Commission considered that the proposed acquisition would not appear to lead to a substantial lessening of competition in the market for the provision of diagnostic imaging services, excluding services to bulk billed public hospital in-patients, in the Sunshine Coast area due to:

" It appears that the barriers to entry are not high;
" It appears that there are a number of diagnostic service providers not presently competing in the relevant market which would be able to enter the relevant market easily;
" There are a number of available substitutes who would be able to expand existing operations ; and
" Countervailing power appears to be present among customers including private hospitals and health funds. Additionally, medical practitioners are able to refer patients to a competing diagnostic imaging provider to assist a new entrant.

Merger type

Horizontal

Guidelines thresholds

Crossed

Imports above 10%

No

Initiation

Parties

ANZSIC code

8639