The Finnish Competition and Consumer Authority (FCCA) has initiated further proceedings concerning an acquisition whereby Attendo Intressenter AB is to gain sole control over Mi-Hoiva.
Attendo and Mi-Hoiva operate in the social services market in Finland, providing care and health services to the public and private sectors. Attendo and Mi-Hoiva offer social, rehabilitation and housing services to the elderly, to mental health and drug and alcohol rehabilitation patients and to mentally disabled persons.
Attendo is part of the Swedish Attendo Group AB. Mi-Hoiva’s operations are run by its subsidiary Mikeva Oy.
According to the FCCA’s initial assessment, the merger of Attendo and Mi-Hoiva may have adverse impacts on competition in the social services market. The social services market has become more concentrated in recent years especially as a result of company acquisitions. There are many companies operating in the field, but many actors are considerably smaller or local than the two parties in this merger. If this merger went ahead, the market would become even more concentrated.
The FCCA will therefore investigate whether the acquisition substantially impedes effective competition on Finnish markets or a substantial part of the markets, particularly through the creation or reinforcement of a dominant market position. The FCCA may approve the acquisition as such, attach conditions to the approval or request that the Finnish Market Court prohibit the acquisition. According to the Competition Act, the subsequent proceedings may not take longer than three months.
The Finnish Competition and Consumer Authority was informed about the deal between Attendo and Mi-Hoiva in June 2017.
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 (0)29 505 3385, firstname.lastname@kkv.fi
According to the Competition Act, the FCCA must be notified of the transaction if the combined turnover of the parties to the corporate transaction exceeds 350 million euros and the turnover of at least two of the parties resulting from Finland exceeds 20 million euros for both. FCCA approves a corporate transaction if it has no harmful impacts referred to in the Competition Act. FCCA will intervene in corporate transactions if its investigations suggest that the acquisition substantially impedes effective competition on Finnish markets or a substantial part of the markets, particularly through the creation or reinforcement of a dominant market position. When necessary, the notification process has two phases. The so-called first phase shall take one month at most. If the acquisition clearly does not have restrictive effects for competition or if the restrictive effects can be prevented by conditions proposed by the parties, the acquisition shall be cleared. Otherwise the FCCA shall take a decision to initiate further proceedings during which the transaction and its competitive effects shall be thoroughly investigated.