AGCM

The markets concerned with the merger deal with blood plasma substitutes, perfusional solutions, peritoneal dialysis and extracorporeal therapy products.

The investigation was focused on the appraisal of the effects of the merger on the market of dialysis products, in particular peritoneal dialysis, given that the other relevant markets were characterized by the presence of a number of qualified competitors in such a way as to avoid that the acquisition in question could restrict competition.

The merger seemed to be critical in relation to the markets of ranges of products, solutions and technologies for peritoneal dialysis, because of the high level of market concentration held by the first three firms, the enhancement of such market structure as a result of the increase of Baxter share, the elimination of one of the most dynamic and active competitors, the presence of barriers to entry connected to distribution, organization and company reputation.

However, the evidence in the inquiry showed that trend in peritoneal dialysis sector in the 90ies has seen an increase in market shares of the two main competitors, and the entry of two new firms holding marginal shares so far.

Despite the merger leads to strengthen the oligopolistic structure of the market of dialysis treatment and not only peritoneal dialysis, and the first three firms hold appreciable shares of such a market, the Authority found that Baxter would not enjoy a stable and durable dominant position, on consideration of trend in the sector concerned and its growth of perspectives.