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Consumer watchdog reviews proposed SA pathology merger

Two of South Australia’s largest healthcare providers are the subject of a ACCC review after announcing moves to merge.

Nov 09, 2015, updated Nov 09, 2015

The proposed merger of South Australia’s two biggest health suppliers, Adelaide Pathology Partners by Sonic Healthcare Australia, will be the subject of a review by the national consumer watchdog.

The Australian Competition and Consumer Commission announced today it would conduct an informal review of the merger between the two health providers to determine if it would weaken competition.

“Given the position of Sonic and APP as two of the four biggest suppliers of pathology services in South Australia, the ACCC’s investigation will focus on whether the removal of APP as a competitor would substantially lessen competition between pathology service providers in South Australia,” ACCC chairman Rod Sims said.

“The ACCC is seeking urgent feedback from interested parties, including competitors and customers of pathology services, who have concerns or may be impacted by this acquisition,” Sims said.

Companies that could be impacted by the proposed merger, in particular by Clinpath community pathology services bulk billing and quality of service, were encouraged to contact the ACCC.

The ACC stated the merger could be finalised before it completed its review and did not release a decision date.

 

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