Press Release – Commerce Commission
Connor Healthcare Limited (Connor) has filed an appeal in the High Court against the Commissions decision declining clearance for it to acquire all the shares in Acurity Health Group Limited (Acurity) it did not already own.Connor Healthcare appeals Commission decision declining clearance
Connor Healthcare Limited (Connor) has filed an appeal in the High Court against the Commission’s decision declining clearance for it to acquire all the shares in Acurity Health Group Limited (Acurity) it did not already own.
The Commission declined Connor’s clearance application because its parent company, Evolution Healthcare (NZ) Pty Ltd (Evolution), would have increased its interest in Acurity as a result of the merger.
The proposed acquisition would have seen three of the four private hospitals in the Wellington region – Boulcott, Bowen and Wakefield – come under common ownership, leaving only Southern Cross Hospital independent of Connor. The Commission considered this would have resulted in some medical procedures only being available at the merged healthcare providers, removing a competitive constraint.
Connor subsequently made a second application for clearance to acquire all of the shares in Acurity, subject to a divestment undertaking which meant that Evolution’s interest in Acurity would remain at the same level as it was prior to the acquisition. The Commission cleared this second application.
Connor’s appeal relates only to the first decision.
A timetable for hearing in the Wellington High Court has yet to be set. Because the matter is before the Court, the Commission will not be making any further comment at this time.