The Australian GP Alliance made a submission and engaged in a number of discussions with the Australian Competition & Consumer Commission (ACCC) regarding our concerns with the Australian Clinical Lab’s  proposed acquisition of Healius. AGPA’s concerns centered around the potential for service quality reduction and the reduction of competition for collection centre rentals. This has the potential to impact on a tender process to establish market rents, with a resultant reduction in the ability to establish rental rate that is higher the assessed value of the property.

On 15 December 2023 the Australian Competition & Consumer Commission (ACCC) announced that they would oppose the Australian Clinical Lab’s proposed acquisition of Healius

The ACCC has decided to oppose the proposed acquisition of Healius Limited (ASX:HLS) by Australian Clinical Labs Limited (ASX:ACL).

Following an in-depth investigation, the ACCC has concluded that the proposed acquisition is likely to result in a substantial lessening of competition in Australian pathology services markets.
The ACCC considers the proposed acquisition is likely to substantially lessen competition in the supply of out-patient pathology services, private hospital in-patient pathology services, and commercial pathology services.

ACL and Healius both supply pathology services to the community, private and public hospitals, commercial and government customers, and veterinary clinics. They compete closely with one another and offer services under well-known brands.

“We consider that the proposed acquisition would be likely to result in a substantial lessening of competition as it would combine two of the three largest providers of pathology services in Australia, further consolidating already-concentrated markets,” ACCC Commissioner Stephen Ridgeway said.

 

The full ACCC media release is here