23 March 2017
The Finnish Competition and Consumer Authority (FCCA) approved an acquisition on 23 March 2017 by which Terveystalo Healthcare Oy gains control over Diacor Terveyspalvelut Oy. Based on the FCCA’s investigations, the acquisition will not significantly impede effective competition.
Terveystalo and Diacor are both healthcare service companies that provide services to employers, private individuals and insurance companies. Terveystalo also has service contracts with local authorities and joint authorities.
The FCCA decided to commence further proceedings concerning the transaction between Terveystalo and Diacor in December 2016, as its preliminary investigations suggested that the acquisition could have adverse impacts on competition in the occupational healthcare service market in particular.
The FCCA’s further investigations demonstrated that there is relatively little overlap in the business operations of the companies due to differences in the scope of their branch networks. Terveystalo operates nationwide and its market position is the strongest, relatively speaking, in Northern and Eastern Finland. Terveystalo’s market share in the Helsinki Metropolitan Area is considerably lower than elsewhere in the country. Diacor, on the other hand, is a regional operator with branches in the Helsinki Metropolitan Area and Turku.
There will also be enough competition left in the healthcare service market even after the acquisition. The most notable competitor is Mehiläinen, which has been a considerably closer competitor of Terveystalo than Diacor also before the acquisition. Of other competitors, Pihlajalinna has announced plans of expanding its operations substantially in the near future, and OP-Pohjola has announced plans of expanding its network of Pohjola Hospitals during the next two years.
The FCCA’s decision includes business secrets of the parties involved. The decision cannot be published until the business secrets have been removed, i.e. in around two weeks’ time.
Further information: Sanna Syrjälä, Head of Research, tel. +358 29 505 3385; Valtteri Virtanen, Assistant Director, tel. +358 29 505 3621