The Finnish Competition and Consumer Authority (FCCA) has asked the Finnish Market Court to extend the time limit for the FCCA’s Phase II investigation on Terveystalo’s acquisition of Attendo until 14 December 2018. Without the extension, the time limit would end on 16 October 2018. Given the uncertainties related to the health and social services reform in Finland, an extension any shorter than the one requested would not be sufficient for the completion of FCCA’s investigation.
On 14 June 2018, a transaction whereby Terveystalo Healthcare Oy acquires Attendo Terveyspalvelut Oy was notified to the FCCA. Terveystalo Healthcare Oy is a nationwide healthcare service company that provides services to individuals, businesses, insurance companies and the public sector. Terveystalo Healthcare Oy is a member of the Terveystalo Group whose parent company is Terveystalo Oyj. Attendo Terveyspalvelut Oy is part of the social and healthcare services group Attendo, the parent company of which has its domicile in Sweden. The healthcare services of Attendo Suomi consist mostly of human resources services, basic healthcare, occupational healthcare, oral healthcare and comprehensive outsourcing services provided to the public sector.
The FCCA initiated an in-depth investigation to assess the acquisition on 16 July 2018. Based on the FCCA's preliminary investigation, the acquisition may have adverse effects on competition in the Finnish healthcare service market. The combined market share of the parties is significant in some of the local markets where both Terveystalo and Attendo operate. The assessment of the competitive effects is greatly affected by the health and social services reform which, upon its implementation, will have an effect on the competition in the healthcare service market.
Due to the uncertainties related to the health and social services reform, including its timetable, final content and implementation, the FCCA will assess the effects by taking into account the changes caused by the reform in the current healthcare service market, in addition to which the FCCA is assessing the impact of the transaction in a scenario where the reform will not be implemented.
According to the Competition Act, the FCCA may approve the acquisition as such, approve the transaction subject to conditions or propose that the Finnish Market Court prohibits the acquisition.
Read more: The FCCA investigates how Terveystalo’s acquisition of Attendo affects competition (FCCA press release 17 July 2018)
Research Officer Pontus Ranta, tel. +358 29 505 3747
Assistant Director Sanna Syrjälä, tel. +358 29 505 3385