SummaryHospital Supplies Australia acquired Clifford Hallam Pharmaceuticals. Both supplied the non-retail and hospital sectors with wholesale pharmaceuticals and medical supplies.
Market definitionThe market is likely to be the wholesale distribution of pharmaceuticals to non-retail customers on a state or multi state basis.
Competition analysisThe proposed acquisition is unlikely to result in a substantial lessening of competition in any market due to:
- The continued presence of Mayne as an established and effective competitor (as well as other wholesalers providing a competitive discipline);
- The countervailing power of manufacturers and non-retail customers;
- The moderate level of barriers to entry which has allowed Exel and smaller operators to expand.