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THE Competition Commission of Singapore (CCS) said on Monday that it had blocked last week the proposed acquisition of RadLink-Asia and its subsidiaries by Parkway Holdings. RadLink-Asia is owned by Fortis Healthcare Singapore.
Both Parkway and Fortis have since announced that the acquisition is off, CCS said. The acquisition would have been undertaken by Medi-Rad Associates Ltd, an indirect wholly owned subsidiary of IHH Healthcare Berhad.
On March 11, the CCS issued letters to both parties, informing them of its provisional decision to block the proposed acquisition.
"In the letters, CCS stated that the proposed transaction would result in a substantial lessening of competition in the affected markets, and would infringe section 54 of the Competition Act."
CCS said that following the proposed merger, Parkway would become the only commercial supplier of radiopharmaceuticals in Singapore through its 33 per cent shareholding of Positron Tracers Pte Ltd and the acquisition of all of RadLink.
"CCS's market inquiries indicated that no potential new radiopharmaceutical supplier would enter the market in the next two to three years to compete with the merged entity," it said.
RadLink is Parkway's closest competitor in the area of radiology and imaging services for private outpatients in Singapore, CCS added. Besides gaining "very substantial market share", the merged entity would enjoy "moderate to high" entry barriers, and weak bargaining power of customers.
Fortis said it will continue to explore alternative strategic opportunities related to RadLink, CCS said. IHH Healthcare, which owns Parkway, had said the offer lapsed and ceased to be of effect.