CCS Initiates Phase 2 Review of Proposed Acquisition by Parkway Holdings Ltd of Radlink-Asia Pte. Ltd. and Invites Public Feedback

17 December 2014

Background

1. CCS received a joint notification for decision on 15 October 2014 from the Parties in relation to anticipated acquisition by Parkway Holdings Ltd (“Parkway”), through its wholly-owned subsidiary, Medi-Rad Associates Ltd (‘‘Medi-Rad’’), of the entire equity stake in RadLink-Asia Pte. Ltd. (“Radlink”) together with its subsidiaries, from Fortis Healthcare Singapore Pte. Limited (‘‘Fortis’’) (the ‘‘Proposed Transaction’’). The notification was made in relation to section 54 of the Competition Act which prohibits mergers that have resulted, or may be expected to result, in a substantial lessening of competition within any market in Singapore.

2. In Singapore, both Parkway and Radlink are active in (a) the supply of radiopharmaceuticals[1]; (b) the provision of radiology and imaging services[2]; and (c) the provision of primary care clinics and services.

Initiation of Phase 2 review

3. Phase 1 review of the Proposed Transaction was completed on 26 November 2014. At the Phase 1 review, based on information furnished by Parkway and Fortis (collectively, the “Parties”) and industry and third party feedback, CCS was unable to conclude that the Proposed Transaction would not raise competition concerns. In particular, CCS found that the merger significantly reduces the number of providers of radiology and imaging services and the number of suppliers of radiopharmaceuticals in Singapore, and therefore requires further competition analysis.[3] The Parties were advised to file Form M2.

4. The Parties have filed Form M2 and other relevant documents on 10 December 2014, and the Proposed Transaction has now proceeded to a Phase 2 review. Phase 2 of the review can take up to 24 weeks to complete as it entails a more detailed and extensive examination of the effects of the merger. At the end of the Phase 2 review, CCS will decide whether to issue a favourable or unfavourable decision.

Public Feedback

5. In relation to the Phase 2 review, CCS is inviting all feedback and views in relation to the Proposed Transaction.

6. More information on the Proposed Transaction can be accessed from the CCS website at www.ccs.gov.sg under the section “Public Register and Consultation”. The closing date for submissions is on or before 9 January 2015. If the submission/correspondence contains confidential information, please also provide CCS with a non-confidential version of the submission or correspondence.

About The Competition Commission of Singapore (CCS)

CCS is a statutory board established under the Competition Act (Chapter 50B) on 1 January 2005 to administer and enforce the Act. It comes under the purview of the Ministry of Trade and Industry. The Act empowers CCS to investigate alleged anti-competitive activities, determine if such activities infringe the Act and impose suitable remedies, directions and financial penalties.

For more information, please visit www.ccs.gov.sg.

For media clarifications, please contact:

Ms. Grace Suen
Assistant Director
Strategic Planning Division
Competition Commission of Singapore
Email: grace_suen@ccs.gov.sg
DID: 6325 8216

[1] A radiopharmaceutical is a radioactive drug used for diagnosis of medical conditions or therapy in a tracer quantity with no pharmacological effect. It is composed of two parts; a radionuclide and a pharmaceutical.

[2] These are medical imaging services that include x-ray, PET, and CT scans.

[3] https://www.ccs.gov.sg/media-and-publications/media-releases/ccs-raises-competition-concerns-on-proposed-acquisition-by-parkway-holdings-ltd-of-radlinkasia-pte-ltd-moves-to-more-detailed-phase-2-review