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CCS’S STUDY FINDS NO
ADVERSE EFFECT ON
COMPETITION IN THE
KIDNEY DIALYSIS MARKET
AFTER MERGER
HEALTHCARE
| MARKET STUDY
Case Team Members:
Lim Wei Lu
Toh Shihua
Ng Ming Jie
Ng Ee Kia
CCS’s post-merger study of the kidney
dialysis market followed its decision
to clear the acquisition by Asia Renal
Care (SEA) Pte Ltd of Orthe Pte Ltd in
2012 (the “Acquisition”). This study was
part of CCS’s on-going efforts to assess
the impact of its interventions so as
to ensure markets work well for both
businesses and consumers in Singapore.
THE
BARRIERS TO ENTRY
AND
EXPANSION BY NEW
PROVIDERS
IN THE KIDNEY
DIALYSIS MARKET WERE NOT
HIGH.
TREATMENT SERVICES
ACROSS
PROVIDERS WERE
LARGELY
SIMILAR.
PATIENTS COULD
SWITCH
EASILY
BETWEEN DIALYSIS
CENTRES.
IN THE AREAS WHERE THE MERGED PARTIES’ DIALYSIS CENTRES WERE NEAR EACH
OTHER, THERE WAS ALSO
AT LEAST ONE OTHER COMPETING PROVIDER LOCATED IN
THE VICINITY.
Although the Acquisition resulted in a
merged entity Fresenius Medical Care
Singapore (“FMC”) with a high combined
market share
[1]
that significantly
exceeded 40%, CCS allowed the merger
to proceed on the basis that there
would not be a substantial lessening
of competition because:
1
4
2
3
36
GUIDING YOU TO NEW HEIGHTS
CCS ANNUAL REPORT 2015-2016