Competition watchdog clears Econ Healthcare acquisition, says deal has not substantially lessened competition

This is in view of the low market shares of the parties involved in the acquisition, among other reasons

Singapore’s competition regulator has cleared US private equity firm TPG’s acquisition of nursing home operator Econ Healthcare (Asia) after opening a public consultation to seek feedback on the deal in September.

“The transaction has not resulted in a substantial lessening of competition in relation to the supply of non-residential care services, and both subsidised and unsubsidised nursing home services in Singapore,” the Competition and Consumer Commission of Singapore (CCCS) said in a statement on Thursday (Oct 9).

The competition watchdog earlier opened a public consultation on Sep 8 to seek feedback on TPG’s acquisition of Econ Healthcare (Asia). TPG proposed to privatise the nursing home operator on Feb 14.

In August, the investment firm applied to CCCS for a decision on whether the acquisition would be anti-competitive, as a company within its portfolio had business operations that overlapped with Econ Healthcare (Asia).

The company, Invest Healthcare Group, provides eldercare services in Singapore through its operation of the Orange Valley nursing home chain, and also offers non-residential care services.

Meanwhile, Econ Healthcare (Asia), alongside its subsidiaries, operates nursing homes in Singapore and Malaysia, and also has a presence in China. The company operates eight medicare centres and nursing homes in Singapore, where it also provides non-residential care services.

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After assessing TPG’s submissions and feedback from third parties, CCCS concluded that the relevant markets are likely to remain competitive after the acquisition.

This was in view of the low market shares of the parties involved in the deal, the presence of viable competitors and constraints on price increases under the Ministry of Health’s schemes for subsidised nursing home services, CCCS said in its Thursday statement.

It also highlighted the potential for competitors to switch supply of capacity to unsubsidised nursing home services as a reason for its ruling.