MERGERS: AMO SR approved the merger of undertakings PENTA INVESTMENTS LIMITED and MEDICAL GROUP SK, a.s.

Updated: 22.02.2022

AMO SR approved a merger grounded in the acquisition of indirect exclusive control over undertaking MEDICAL GROUP SK, a.s., by undertaking PENTA INVESTMENTS LIMITED.
On 10 February 2022 the Antimonopoly Office of the Slovak Republic, the Division of Concentrations, (hereafter “the Office“) approved a merger grounded in the acquisition of indirect exclusive control over undertaking MEDICAL GROUP SK, a.s., the Slovak Republic (hereafter “MEDICAL GROUP“ or “acquired company”) by undertaking PENTA INVESTMENTS LIMITED, Cyprus (hereafter „PENTA”).

PENTA operates in markets mainly in the field of healthcare provision (institutional outpatient, pharmaceutical), the provision of public health insurance, financial services, retail, manufacturing, media, real estate activities and real estate development.
 
MEDICAL GROUP is a distribution company specializing in the comprehensive supply of medical facilities and pharmacies with medicines and medical devices.

The Office found out that the activities of merging parties practically do not overlap horizontally. In terms of vertical effects in relation to the supplier of medicines and medical devices and the customers of medicines and medical devices (pharmacies, hospitals and dispensaries, insurance companies), the Office found the following facts. It assessed all the possible alternatives of relevant markets with regard to the position of merging parties, in the context of structure of particular markets, which the Office knows based on its previous decision-making activities. Given that the possible narrower segmentation of wholesale distributors´ segment from all alternative perspectives would not significantly affect the position of merging parties in the wholesale distribution of medicines neither the assessed impact of merger in question on the conditions of competition, the Office did not consider the precise definition of relevant markets necessary. From the point of view of supply market (within individual alternatives) of medicines and medical devices, data submitted in the merger notification shows the low market share of acquired company within individual market alternatives, including the designation of sufficient competition in the form of medicines wholesale distributors with a stronger market position. The Office also took into account that the acquired company does not distribute any specific category of medicines and medical devices, and thus the activity of acquired company is not specific in the market in terms of goods it distributes, resp. services it provides.

After evaluating documentation and information obtained, the Office concluded that the merger assessed complies with the Article 11 Paragraph 1 of the Act on Protection of Competition, as it will not significantly impede effective competition in relevant market, in particular as the result of creation or strengthening of dominant position.
 
The decision came into force on 21 February 2022.

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