CCPC obtains commitments from Uniphar to secure approval for proposed acquisition of SISK Healthcare
August 17, 2018
Following an extensive investigation, the Competition and Consumer Protection Commission (CCPC) has today cleared the proposed acquisition of sole control of SISK Healthcare by Uniphar Public Limited Company (Uniphar), subject to a number of binding commitments. SISK Healthcare, the group name for ROI Healthco IOM 2 Limited and all of its subsidiaries, is involved in healthcare distribution primarily as a distributor of medical supplies to hospitals.
Following notification on 26 April 2018, the CCPC undertook an in-depth investigation, including issuing requirements for further information to the parties and market enquiries involving a number of suppliers, customers and competitors of the parties. The CCPC’s primary role in reviewing mergers and acquisitions is to ensure that a proposed transaction does not substantially lessen competition in any market for goods or services in the State.
Uniphar, as an agent, issues invoices on behalf of certain manufacturers/wholesalers of medical supplies giving it access to third parties’ prices and trading conditions for specific products. SISK Healthcare has the distribution rights for certain competing brands/products. In the course of the investigation, the CCPC became concerned that following the implementation of the proposed transaction, Uniphar could use its access to third parties’ commercially sensitive information to influence the trading decisions of SISK Healthcare.
To address these concerns, Uniphar agreed to submit commitments to the CCPC which included firewall and confidentiality commitments, specifically relating to orthopaedic products, diagnostic imaging products and custom procedure packs. These commitments are intended to prevent the exchange of competitively sensitive information between Uniphar’s pre-wholesale/logistics provision division and SISK Healthcare’s wholesale business units following completion of the proposed transaction.
The CCPC concluded that these commitments were appropriate and effective in addressing its competition concerns. The commitments form part of the CCPC’s determination, to clear the proposed transaction, which makes them legally binding.
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Additional Information
Uniphar is a public limited company headquartered in Citywest Business Park, Co. Dublin and as far as it relates to the supply of medical supplies in the State, Uniphar, through its subsidiary, All-Phar Services Limited, acts as a pre-wholesaler/logistic services provider (providing a range of distribution services including warehousing and order processing (invoicing and delivery) on behalf of specific manufacturers/wholesalers.
SISK Healthcare, headquartered in the State, is involved in healthcare distribution in the State (typically as a distributor of medical supplies to hospitals, where it enters into agreements with various manufacturers (often exclusively) and purchases inventory directly from such manufacturers for distribution), comprising four main divisions:
- M.E.D. Surgical – specialising in the distribution of surgical products, e.g. in relation to general surgery, laparoscopic surgery and urology products;
- Cardiac Services – supplying diagnostic and therapeutic medical equipment primarily in the ICU, coronary and maternity fields;
- Tekno Surgical – distributing specialist medical products focusing on the orthopaedic, aesthetics and surgical sectors; and
- Synapse Medical – supplying medical devices in the areas of cardiology, endovascular, neuroradiology, CT/MRI scans, biopsies, vascular and diagnostic imaging.
