Sonic Healthcare Limited (through its subsidiary Sullivan Nicolaides Pathology Limited) proposes to acquire Central Queensland Pathology Limited.

Summary

Sonic Healthcare Limited (through its subsidiary Sullivan Nicolaides Pathology Limited) proposes to acquire Central Queensland Pathology Limited.

Market definition

The supply of pathology services, excluding services to public hospital in-patients, in Queensland.

Competition analysis

The ACCC considered that in the relevant market:
* barriers to entry and expansion are high;
* there is no countervailing power; and
* there are no significant regulatory constraints to the merged entity increasing prices.

However, the ACCC considered that the proposed acquisition is unlikely to substantially lessen competition in the relevant market because:
* Sonic does not have any operations in or around Mackay, Queensland, where the target operates; and
* the target does not currently represent a significant competitor in the relevant market.

Merger type

Horizontal

Initiation

Parties