Supplied Content
Wellington, July 14, 2017
The Commerce Commission has published a Statement of Preliminary Issues relating to Healthcare of New Zealand Holdings Limited (Healthcare NZ) proposed acquisition of Geneva Healthcare Limited and its related companies.
The statement of preliminary issues outlines the key competition issues that the Commission currently considers will be important in deciding whether or not to grant clearance to the proposed acquisition. A copy can be found on the Commission’s Clearances Register.
The following is a Statement issued by the Commerce Commission of New Zealand.
The Commission invites interested parties to provide comments on the likely competitive effects of the proposed acquisition.
Submissions can be sent by email to registrar with the reference Healthcare NZ/Geneva in the subject line by Thursday, August 3, 2017.
The Commission is currently scheduled to make a decision on Healthcare NZ’s application by Friday 25 August 2017. This date may change as our investigation progresses. In particular, if we need to test and consider the issues identified further, the decision date is likely to extend.
Background
Healthcare NZ is seeking clearance to fully acquire the Geneva Healthcare Group.
Healthcare NZ is the holding company of Healthcare of NZ Limited, New Zealand Care Group Limited, Healthcare Rehabilitation Limited, Explore Services Limited and Solora Limited. These companies provide home and community support services to injured, unwell, disabled and elderly New Zealanders.
The Genera Healthcare Group
The Geneva Healthcare Group comprises of Geneva Healthcare Limited and its related companies: Geneva Clean Limited, My Skill Limited, Geneva Health Technology Limited and Geneva Care Limited. It provides home and community support services to injured, unwell, disabled and elderly New Zealanders, and community living services to New Zealanders with a physical or intellectual disability. It also provides temporary staffing and recruitment services to hospitals and other providers. Geneva Healthcare Limited has a 50% shareholding in Geneva Elevator Limited Partnership, which provides recruitment services for people living with disabilities.
Healthcare NZ and the Geneva Healthcare Group predominantly provide these services through funding from the ACC, DHBs and the Ministry of Health. They also provide these services through private funding but on a much smaller scale.
When considering a proposed merger, the Commission must determine whether any competition that would be lost with the merger would be substantial.
We will give clearance to a proposed merger only if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.
A fact sheet explaining how the Commission assesses a merger application is available on the clearances page.
*
