Clifford Hallam Healthcare Pty Ltd - proposed acquisition of Cottman Australia Pty Ltd

Market definition

The ACCC considered the proposed acquisition in the context of the Western Australian, South Australian, Northern Territory and Victorian markets for the distribution of pharmaceuticals and medical consumable products to non-retail customers (such as hospitals and medical centres).

Competition analysis

The ACCC considered that the proposed acquisition was unlikely to result in a substantial lessening of competition in any market due to:
- the effective competitive constraint provided by alternative wholesalers;
- the ability of purchasing authorities, buying groups and manufacturers to establish in-house warehousing and distribution or sponsor expansion by an existing wholesaler of pharmaceuticals and/or medical consumable products; and
- the existence of potential entrants to the SA, WA, NT and Victorian markets that already have some of the expertise and/or assets required.