The CNMC sees competition risks in Oximesa's acquisition of Esteve Teijin Healthcare.
The body decides to carry out a more in-depth analysis in the second phase, which allows third parties involved to present allegations.
BarcelonaThe National Commission of Markets and Competition (CNMC) has decided to advance the acquisition of Esteve Teijin Healthcare by Oximesa to Phase 2—a more in-depth analysis in which parties considered affected can submit objections. According to the agency chaired by Cani Fernández, the transaction could lead to excessive dominance of the home respiratory therapy market.
The buyer, a subsidiary of the Japanese company Nippon Gases, closed an acquisition agreement last December for more than €100 million, with the aim of leading respiratory therapies in Europe. In the first phase of the analysis, the CNMC has detected "a high concentration in this market," as the acquired company is the one with the greatest growth prospects.
According to an initial assessment, this acquisition could lead to the disappearance of the only medium-sized competitor (Esteve), capable of exerting pressure on the two largest operators (Oximesa and Air Liquide). At the same time, he believes it could "facilitate the coordination of behavior among companies operating in a transparent and organized market where public tenders are held."
The CNMC concludes in this initial phase that the merger could pose "risks derived from the existing vertical relationships between the markets for the distribution of medical devices and the market for home respiratory therapy services, as well as between this and the market for the production and supply of medical oxygen."
The transaction's progress to a second phase of analysis, as occurred with BBVA's takeover bid for Sabadell, which is now on the table of the Council of Ministers (third phase), does not presuppose the conclusions of the transaction, according to the CNMC, which will require more information from the various operators. Both the buyer and interested third parties may submit arguments to defend their interests. The final resolution may authorize, agree on commitments, subordinate conditions, or prohibit the transaction.