Proposed Acquisition by Asia Renal Care (SEA) Pte Ltd of Orthe Pte Ltd

Notifying Parties:

Asia Renal Care (SEA) Pte Ltd and Orthe Pte Ltd

Notifying Date:

16 November 2012

Summary of Transaction:

PART 5
INFORMATION FOR THE CCS PUBLIC REGISTER
(TO BE COMPLETED BY THE APPLICANT(S))

(i)            the names of the merger parties:

Purchaser: Asia Renal Care (SEA) Pte Ltd

Target: Orthe Pte Ltd, and its subsidiary Kidney Therapy Centre Ltd

(ii)          a description of the transaction:

The notified transaction relates to the purchase by Asia Renal Care (SEA) Pte Ltd of  70% of the shares in Orthe Pte Ltd,  from Dr Lye Wai Choong and Dr Leong See Odd. The purchaser already owns 30% of the shares in Orthe Pte Ltd, i.e. upon completion of the notified transaction, the purchaser will own 100% of the shares in Orthe Pte Ltd.

(iii)         a description of the business activities of the merger parties worldwide and in Singapore:

The merger parties are active in the provision of dialysis services to End Stage Renal Disease patients. The purchaser is also active in the manufacture and supply of dialysis products at a global level.

(iv)         a description of the overlapping goods or services, including brand names:

The only overlapping goods or services are the provision of dialysis services to End Stage Renal Disease patients in Singapore.

(v)           the applicant’s views on:

a. definition of the relevant market(s);
b. the way in which competition functions in this market;
c. barriers to entry and countervailing buyer power; and
d. the competitive effects of the merger (non-coordinated, coordinated and/or vertical effects, as relevant).

The Applicants are of the view that the relevant market is the provision of dialysis services to End Stage Renal Disease patients in Singapore. The Applicants’ view is that there is intense competition in this market with the presence of one other major competitor with more than 50% market share. Further, entry barriers in the market are low and countervailing buyer power is substantial. For these reasons, the Applicants take the view that the merger, when carried into effect, will not lead to a substantial lessening of competition within any market in Singapore. In fact, the merger will only have a marginal impact on the competitive structure of the relevant market as the merged entity will have substantially the same market share as that currently possessed by the Purchaser in Singapore. There is also no risk of vertical foreclosure as the Applicants do not have market power in any of the relevant markets and due to the presence of strong competitors in the upstream markets.

Decision:

The proposed merger, if carried into effect, will not infringe the section 54 prohibition.

Decision Date:

26 December 2012
Click here for the decision.