Further investigation needed into the acquisition of Eurocept and Excellent Clinics by Mediq

Mediq Nederland wishes to acquire Eurocept Homecare and Excellent Clinics. Mediq and Eurocept supply, among other products, medical aids and medical nutrition to patients that receive care at home. In addition, they also supply these products to hospitals. In its clinics, Excellent Clinics offers complex wound care and oxygen therapy. With regard to ambulatory infusion pumps and tube feeding, the Netherlands Authority for Consumers and Markets (ACM) wishes to conduct a further investigation into the planned acquisition’s effects on competition. A decrease in competition can affect the price, quality, and innovation of these products.

ACM has indications that, after the acquisition of Eurocept and Excellent Clinics, Mediq will have a very strong position in the market for ambulatory infusion pumps. These are portable devices for administering liquid medications and nutrients using feeding tubes. These companies will also obtain a strong position with regard to tube feeding. In both areas, more investigation is needed before the acquisition can be properly assessed. That is why these companies must apply for a license if they wish to go through with their acquisition.

What are the next steps?

If these companies decide to continue with their acquisition plans, and file an application for an acquisition license with ACM, ACM will launch a follow-up investigation into the effects of this planned acquisition. ACM will then examine whether buyers such as home care providers and hospitals will continue to have sufficient opportunities to choose other suppliers or manufacturers if they do not wish to buy from these companies. In addition, ACM will assess whether, after the acquisition, health insurers will continue to have sufficient opportunities to enter into contracts with competitors of these companies for treatments for their clients.

ACM’s concentration control: mergers and acquisitions in health care

Through its assessments of mergers and acquisitions, ACM contributes towards the affordability, accessibility, and quality of health care. In ACM’s assessments of mergers and acquisitions, the consequences for patients and insured are central. If patients and health insurers have sufficient options after the merger or acquisition, it will help towards lower prices, higher quality, and more innovation in health care.

More in this case

20-05-2021 Mediq cannot acquire Eurocept Homecare and Excellent Clinics yet (final notification) (in Dutch)

15-02-2021 Mediq wishes to acquire Eurocept Homecare and Excellent Clinics (concentration notification) (in Dutch)