The Commerce Commission has published a statement of preliminary issues relating to an application from Southern Community Laboratories Limited seeking clearance to acquire 100% of the shares in Medlab South Limited (Medlab South).

Companies related to SCL and Medlab South provide community and hospital pathology services to various District Health Boards throughout New Zealand.

The statement of preliminary issues outlines key competition issues that the Commission currently considers will be important in deciding whether or not to grant clearance.

The Commission's statement of preliminary issues and the public version of the application are on the Commission's website at: www.comcom.govt.nz/clearances-register.

The Commission invites submissions from parties who consider that they have information relevant to the Commission's consideration of this matter.   Submissions can be sent to registrar@comcom.govt.nz with the reference SCL/Medlab South in the subject line of your email or to PO Box 2351, Wellington 6140 by 4pm on Tuesday 20 March 2012.      

 

Background

Assessing an application for a merger or acquisition

When considering a proposed merger, the Commission must decide whether the competition that is lost in a market when two businesses merge is substantial. We will give clearance to a proposed merger only if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.

A fact sheet explaining how the Commission assesses a merger application is available for download at www.comcom.govt.nz/mergers-and-acquisitions-merger-assessment-fact-sheet.