Market definitionThe market for the provision of diagnostic imaging services (excluding nuclear medicine and MRI) to patients in the Bendigo region (excluding in-patients at public hospitals).
Competition analysisThe merged firm will supply all radiology services in the Bendigo region, either directly or indirectly. However, barriers to entry caused by lack of radiologists do not appear to be particularly high in this region, as demonstrated by Benson Medical Imaging's successful entry in 2000 and Bendigo Radiology Group's success in hiring two radiologists in the last 18 months. Further, it is likely that in the absence of the acquisition, Benson Medical Imaging would have ceased to exist and Bendigo Radiology Group would remain as the sole supplier of these service. Therefore, it is unlikely that the merger will lead to a substantial lessening of competition.