The Commerce Commission has received a clearance application from Central Healthcare Operations Limited seeking clearance 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 that are practicing in the Manawatū area. Many of these specialists currently practice at the Crest Hospital. Central Healthcare recently announced an intention to build a medical facility on Milson Line in Palmerston North.
Southern Cross operates several private elective surgery hospitals across New Zealand, either directly or via joint ventures such as the joint venture that operates the Crest Hospital in Palmerston North.
A public version of the clearance application will be available shortly on the Commission's case register.
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.
