ACCC puts Sonic Healthcare’s South Australia pathology deal under the microscope

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The ACCC wants feedback on Sonic Healthcare's expansion plans in South Australia. Photo: Louise Douvis

The ACCC wants feedback on Sonic Healthcare’s expansion plans in South Australia. Photo: Louise Douvis

 

The Australian Competition and Consumer Commission has called for feedback from customers and suppliers of pathology services in South Australia as it assesses Sonic Healthcare’s proposed acquisition of Adelaide Pathology Partners.

Sonic, an $8 billion provider of diagnostic services, and Adelaide Pathology Partners (AAP) are two of the four biggest pathology providers in South Australia.

Through its subsidiary, Clinpath Laboratories, Sonic operates more than 70 collection centres in the state while AAP operates more than 60 collection centres.

“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.” 

The competition regulator has blocked Sonic in the past. It refused to allow Sonic to buy the NSW and Queensland operations of Healthscope’s Australian pathology business in 2012.

The ACCC wants submissions on the Sonic-AAP proposal by November 13.