The Australian Competition and Consumer Commission opposed Australian Clinical Labs' proposed acquisition of Healius (ASX:HLS), citing concerns about substantially lessening competition in the country's pathology services markets.
The regulator expressed concerns that the deal could negatively affect patients and doctors, potentially leading to longer turnaround times, shorter operating hours, reduced medical practitioner support, and increased private billing costs.
The ACCC acknowledged that Australian Clinical Labs offered a court-enforceable undertaking to divest some collection centres but stated that this did not adequately address competition concerns.
The acquisition would have resulted in a single entity operating more than 50% of Australia's approved pathology collection centres.