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.
Date of referral: 3.5.17
Statutory deadline: 17.10.17
Next milestone: Provisional findings due in mid August 2017
- Full administrative timetable (12.5.17)
9 June 2017: The issues statement sets out the scope of the inquiry. It outlines initial theories on what might be adversely affecting competition, but it does not set out findings or conclusions.
- Issues statement (9.6.17)
The publication of the evidence of any party on the CMA’s webpages does not indicate in any way endorsement by the CMA of the views expressed in the evidence or acceptance of that evidence. Publication in this way is designed to assist public understanding of the issues.
Response to the phase 1 decision
- Cygnet/CAS (9.6.17)
- Merger notice (9.6.17)
Directions to appoint monitoring trustee
26 May 2017: On 17 May, the CMA directed Cygnet Healthcare Limited, pursuant to the interim order dated 17 May, to appoint a monitoring trustee.
- Directions for monitoring trustee (26.5.17)
26 May 2017: On 17 May 2017, the CMA made an interim order under section 81 of the Enterprise Act 2002 applying to Universal Health Services, Inc. and Cygnet Healthcare Limited, in relation to the completed acquisition by Cygnet Health Care Limited of the Cambian adult services division of Cambian Group plc. The initial enforcement order of 29 December 2016 will cease to be in force on the date of making this order by virtue of section 72(6) of the Act.
- Interim order (26.5.17)
- Derogation 23 May 2017 (9.6.17)
Inquiry group appointed
8 May 2017: The CMA has appointed the inquiry group.
Terms of reference
3 May 2017: The CMA has referred Cygnet’s merger with the Cambian adult services division of Cambian Group plc for an in-depth investigation.
- Terms of reference (3.5.17)
|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|
- Reference decision (4.3.17)
- News story: CMA refers Cygnet/Cambian merger for in-depth investigation (3.5.17)
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.
- Commencement of initial period notice (22.2.17)
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.
- Initial enforcement order (29.12.16)
Published: 29 December 2016
Updated: 9 June 2017
Opened: 29 December 2016
- Issues statement, merger notice, parties’ response, and derogation published.
- Interim order and directions to appoint monitoring trustee published.
- Timetable published.
- Inquiry group appointed.
- Reference decision published.
- Reference decision announced and terms of reference published.
- Derogation published.
- Decision announced: reference unless undertakings accepted.
- Derogation published.
- Derogation published.
- Launch of merger inquiry and invitation to comment issued.
- First published.