The Commerce Commission has granted clearance for Central Healthcare Operations Limited to acquire 100% of the shares in Aorangi Hospital Limited.
At present, Aorangi and Southern Cross Healthcare Limited operate the Crest Hospital in a joint venture. Crest is currently the only private hospital in Palmerston North. The proposed acquisition would give Central Healthcare a 50% shareholding in the Crest Hospital.
Central Healthcare is owned by a group of shareholders associated with surgeons and other medical specialists, many of whom currently practice at the Crest Hospital. Central Healthcare recently announced an intention to build a medical facility on Milson Line in Palmerston North.
Deputy Chair Sue Begg said the Commission was satisfied that the proposed acquisition is unlikely to substantially lessen competition in any New Zealand market.
"A key focus of the investigation was determining whether, absent the proposed acquisition, Central Healthcare would be likely to compete with Crest Hospital", says Ms Begg. "We are satisfied that absent the proposed acquisition, there is not a real chance that Central Healthcare would do so. Accordingly, we consider there is unlikely to be a loss of competition as a result of the proposed acquisition".
A public version of the written reasons for the decision will be available on the Commission's case register in due course.
Background
We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.
