Baxter International Cleared to Acquire Gambro AB
Baxter International Cleared to Acquire Gambro AB Subject to a Divestment Undertaking
The Commerce Commission has cleared Baxter International Inc (Baxter) to acquire 100% of the shares in Gambro AB (Gambro). The clearance is conditional on Baxter selling its worldwide Continuous Renal Replacement Therapy (CRRT) business to a third party.
Baxter and Gambro are both large international companies supplying a range of medical equipment and consumables. The proposed acquisition affects the markets for the supply of kidney dialysis systems for the treatment of acute and chronic kidney disorders, particularly the supply of Haemodialysis (HD) systems, CRRT machines, consumables, and fluids in New Zealand.
The Commission is satisfied that the low aggregation of market share, coupled with the presence of strong existing competitors, means that the proposed acquisition would not result in a substantial lessening of competition in the market for the supply of HD treatment systems.
However, the Commission considered that the proposed acquisition would be likely to result in a substantial lessening of competition in the market for the supply of CRRT machines, consumables, and fluids, as Baxter and Gambro are currently the only two suppliers of these products in New Zealand. Baxter has therefore provided an undertaking that it will sell its worldwide CRRT business to a third party.
“The Commission is satisfied that the divestment of the CRRT business to an independent competitor will be sufficient to remedy the competitive harm”, said Commerce Commission Chairman Dr Mark Berry.
A public version of the written reasons for the decision will be available soon on the Commission's website at www.comcom.govt.nz/clearances-register