Singapore's competition authority today sought a more detailed review of the proposed Rs 655-crore sale of Fortis Healtcare's RadLink-Asia and its arm to Medi-Rad Associates, saying the deal significantly reduces the number of providers of radiology and imaging services.
"The merger significantly reduces the number of providers of radiology and imaging services and the number of suppliers of radio pharmaceuticals in Singapore, and therefore requires further competition analysis," Competition Commission of Singapore (CCS) said in a statement.
CCS has raised competition concerns on the proposed transaction, based on information furnished by Parkway and Fortis and industry and third party feedback during the Phase 1 review, it added.
The merger will accordingly proceed to Phase II review, upon CCS's receipt of the relevant documents from the parties, CCS said.
In September, Fortis Healthcare had said it had decided to divest 100 per cent stake in healthcare service provider RadLink-Asia and its arm RadLink Singapore to Medi-Rad Associates for SGD 137 million (over Rs 655 crore).
The deal would be successfully closed following the necessary statutory and regulatory approvals as per local requirements, it had added.
"This is in line with our strategic decision to intensify our focus on our core hospital and diagnostics business in India," Fortis Healthcare Executive Chairman Malvinder Singh and Executive Vice Chairman Shivinder Singh had said on the decision to divest the stake.
