Western Medical Imaging - proposed acquisition of St John of God Hospital Ballarat's general diagnostic imaging business

Acquirer(s)

  • Western Medical Imaging

Target(s)

  • St John of God Hospital Ballarat's General Diagnostic Imaging Business

Summary

Western Medical Imaging (WMI) proposes to acquire St John of God Hospital Ballarat's (SJGHC's) general diagnostic imaging business. As part of the transaction, SJGHC will be acquiring WMI's business of diagnostic and interventional angiography services.

Market definition

This merger was assessed within the context of the market for the supply of general diagnostic imaging services (excluding nuclear medicine and MRI, and excluding all in-patients at public hospitals) in the Ballarat region.

Competition analysis

On 10 May 2007, the ACCC formed the view that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant market. Factors informing this conclusion included:

- A number of sizeable competitiors will remain in the market, who are likely to act as a strong competitive constraint on the merged firm; and

- Barriers to entry are moderate and not insurmountable, and there is evidence of new entry.

Timeline

DateEvent
16/04/2007ACCC commences review under the Merger Review Process Guidelines
18/04/2007ACCC commences market inquiries
10/05/2007ACCC announced it would not oppose the proposed acquisition