Acquirer: Smith & Nephew plc; Target: Centerpulse AG

Acquirer(s)

  • Smith & Nephew plc

Target(s)

  • Centerpulse AG

Summary

Proposed acquisition of Centerpulse AG by Smith & Nephew plc

Market definition

The relevant market was considered to be the separate national markets for the supply of hip and knee orthopaedic implants

Competition analysis

While the proposed acquisition would exceed the Commission's concentration thresholds for each market, the following factors indicate that the proposed acquisition is unlikely to substantially lessen competition:
* Centrepulse does not appear to be a significant competitor in Australia;
* imports of the relevant products account for virtually all domestic sales;
* barriers to entry for the manufacture and the importing and supply of the relevant products appear to be generally low;
* there will remain a number of alternative suppliers to whom customers could turn; and
*public hospitals appear to possess some degree of countervailing power through competitive tendering for the relevant products.

Merger type

Horizontal

Guidelines thresholds

Unknown

Imports above 10%

Yes

Initiation

Parties

ANZSIC code

2832