Regulator flags concerns on Australian Clinical's buyout offer for Healius (updated)

Healius

20/07/2023 01:15

(Adds comment from ACCC in paragraph 3 and context about the
bid in paragraph 4)
       July 20 (Reuters) - Australia's competition watchdog on
Thursday raised concerns over Australian Clinical Labs'  ACL.AX 
A$1.52 billion ($1.03 billion) buyout offer for medical centre
operator Healius  HLS.AX , which had rejected the proposal in
May.
    The Australian Competition and Consumer Commission (ACCC)
said the acquisition would lessen competition in the pathology
services markets. 
    "The significant reduction in competition could lead to
adverse consequences for patients, including reduced levels of
bulk billing, higher co-payments for privately billed services,
collection centre closures, less frequent collection of samples,
or longer turnaround times," ACCC Commissioner Stephen Ridgeway
said in a statement.
    Australian Clinical Labs, one of the country's largest
pathology services providers, has been pursuing Healius
shareholders to accept its offer after they rejected its bid,
saying it had "no cash and no premium" and was "plainly
inadequate."
    The company said the ACCC statement was as expected due to
the nature of the acquisition.     
    
    ($1 = 1.4775 Australian dollars)  

 (Reporting by Navya Mittal in Bengaluru; Editing by Sherry
Jacob-Phillips and Subhranshu Sahu)
 ((Navya.Mittal@thomsonreuters.com;))