Pacific Radiology to acquire Wakefield Radiology
Commission clears Pacific Radiology to acquire Wakefield Radiology
The Commerce Commission has granted a clearance to Pacific Radiology Limited to acquire the radiology services, business and assets of Wakefield Radiology Limited.
Pacific Radiology provides radiology services in Christchurch, Nelson and the Hutt Valley, while Wakefield Radiology has clinics in the Wellington and Wairarapa regions.
Chair Paula Rebstock said that the Commission was satisfied that the proposed acquisition would not have, nor would be likely to have, the effect of substantially lessening competition in the markets for:
- the provision of private low tech radiology services in each of the following regions within the greater Wellington area:
- Wellington city and suburbs;
- Wellington North (Johnsonville, Newlands, Tawa, Crofton Downs);
- Hutt Valley;
- Kapiti Coast; and
- Masterton (the low tech markets); and
- the provision of the following private high tech radiology services for the greater Wellington area:
- MRI scans (the MRI market);
- CT scans (the CT market);
- Nuclear medicine (the nuclear market); and
- Interventional radiology, including angiography (the interventional market.
"The likelihood of new entry in the face of an attempt by the merged entity to raise prices, coupled with the ability of health funders such as ACC, health insurers, and DHBs to influence pricing of radiology services, is likely to provide sufficient constraint in the high tech markets. The Commission was satisfied there would be no aggregation in the low tech markets," said Ms Rebstock.
A public version of the decision will shortly be available on the Commission's website under the Adjudication section.