Cygnet Health Care / Cambian adult services division merger inquiry

The CMA is investigating the completed acquisition by Cygnet Health Care Limited of the Cambian adult services division of Cambian Group plc.

Statutory timetable

Phase 1 date Action
21 April 2017 Decision announced
22 February to 8 March 2017 Invitation to comment
22 February 2017 Launch of merger inquiry
28 December 2016 Initial enforcement order

Phase 1

Reference unless undertakings accepted

21 April 2017: The CMA has decided, on the information currently available to it, that it is or may be the case that this merger may be expected to result in a substantial lessening (SLC) of competition within a market or markets in the United Kingdom. This merger will be referred for a phase 2 investigation unless the parties offer acceptable undertakings to address these competition concerns. The full text of the decision will be available shortly.

Cygnet Health Care Limited and the Cambian Adult Services division of Cambian Group plc (CAS) overlap in the supply of hospital-based inpatient rehabilitation services to NHS organisations and local authorities in England and Wales. The Competition and Markets Authority (CMA) looked at competition in the provision of rehabilitation services around approximately 40 of the companies’ sites. Whilst the CMA did not identify problems around the majority of sites, competition concerns were identified in relation to the provision of rehabilitation services to patients suffering from long-term mental health issues in 8 areas and patients suffering from personality disorder in 4 areas.

Given these factors, the CMA has found that there is a realistic prospect of a SLC and the merger will therefore be referred to a phase 2 investigation by an independent group of CMA panel members unless Cygnet is able to offer undertakings that address the SLCs identified.

Launch of merger inquiry

22 February 2017: The CMA announced the launch of its merger inquiry by notice to the parties.

Invitation to comment: Now closed

22 February 2017: The Competition and Markets Authority (CMA) is considering whether it is or may be the case that this transaction has resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.

Initial enforcement order

On 28 December 2016, the CMA served an initial enforcement order under section 72(2) of the Enterprise Act 2002 on Cygnet Health Care Limited, UK Acquisitions No. 6 Ltd and Universal Health Services Inc. in relation to the completed acquisition by Cygnet Health Care Limited of the Cambian adult services division of Cambian Group plc.

Amendments/consents granted

Contact

Please send written representations about any competition or public interest to:

Khadija Nizam
Competition and Markets Authority
Victoria House
Southampton Row
London
WC1B 4AD

khadija.nizam@cma.gsi.gov.uk

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