The Australian Competition and Consumer Commission (ACCC) is wary of the possible market impact if two of the country's largest pathology companies Australian Clinical Labs Limited (ASX: ACL) and Healius (ASX: HLS) join forces, particularly in Victoria where the sector is already more concentrated.
The boards of both companies have been in a war of words since Australian Clinical Labs made a scrip-based $1.58 billion off-market takeover bid for its larger rival, Healius. In March the target claimed the conditions of the offer were 'overly restrictive and burdensome', while the suitor believes the reasons behind the Healius board's unanimous rejection of the deal are 'fundamentally flawed'.
The competition watchdog notes that both companies supply pathology services to the community, private and public hospitals, and veterinary clinics, competing closely under well-known brands.
These include ACL's additional brands Gribbles Veterinary, BeFunctional Labs, Southern Sun Pathology, Helix Pathology, and SunDoctors.
Healius has numerous brands including Laverty Pathology, Dorevitch Pathology, QML Pathology, Abbott Pathology, Western Diagnostic Pathology, TML Pathology, and others.
