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HealthCare NZ to acquire Geneva Healthcare
1 September 2017
Commission grants clearance for
HealthCare NZ to acquire Geneva Healthcare
The
Commerce Commission has granted clearance for HealthCare of
New Zealand Holdings Limited (HealthCare NZ) to acquire 100%
of the shares in Geneva Healthcare Limited and its related
companies.
The merging parties predominantly provide home and community support services funded by the Accident Compensation Corporation, District Health Boards, and the Ministry of Health.
In making its decision, the Commission primarily considered the markets for the provision of these services. It also considered other markets where there was less overlap including residential disability support services, community nursing services, and bureau nursing services.
Commerce Commission Chairman Dr Mark Berry said the Commission is satisfied the acquisition is unlikely to substantially lessen competition in any of the affected markets.
“We do not believe the merged entity would have the ability to increase prices of any of the support services that they supply or reduce the quality of those services as the funders of the services have alternative options,” Dr Berry said.
“With the vast majority of the services publicly funded, there are strict price and quality controls in place to constrain the merged entity from exercising market power.”
A public version of the written reasons for the decision will be available on the Clearances Registershortly.
Background
HealthCare
NZ
HealthCare NZ is the holding company of five
operating companies that provide health services to clients
in their homes and communities including nursing, mental
health support, disability support, injury rehabilitation
and support, and support for clients with challenging
behaviour.
Geneva Healthcare Limited
Geneva
Healthcare Limited provides health services to clients in
their homes and communities including nursing services, home
help, personal and respite care, disability support,
psychiatric services, and injury support and rehabilitation.
Geneva’s related companies are Geneva Health Technology
Limited, Geneva Care Limited, Geneva Clean Limited, and My
Skill Limited from Geneva Group Holdings
Limited.
Merger requirements
A fact sheet
explaining how the Commission assesses a merger application
is available on our website.
ends
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