The President of UOKiK has issued her consent for taking control over Eurodial by Fresenius Medical Care. The undertakings operate inter alia in providing dialysis services for persons with renal failure. However, the transaction can take place under certain conditions. This is first decision of this kind in 2011

The role of UOKiK is to assess the impact of mergers or acquisitions on the market. One of the most serious threats is the significant restriction of competition as a result of achieving by the transaction participants of a dominant market position, i.e. a situation where the undertaking can operate independently of its competitors, contractors and consumers

Under the law, the intention of concentration should be notified to the Office of Competition and Consumer Protection, if it involves undertakings whose combined worldwide turnover in the preceding year exceeded EUR 1 billion or EUR 50 million in Poland. The role of UOKiK is to assess the impact of mergers or acquisitions on the market. One of the most serious threats is the significant restriction of competition as a result of achieving by the transaction participants of a dominant market position, i.e. a situation where the undertaking can operate independently of its competitors, contractors and consumers. If the transaction does not result in a significant restriction of competition, the President of UOKiK shall give her consent to the concentration, otherwise – it shall prohibit it. It is also possible to issue a conditional consent that obliges the undertaking to sell a part of the assets or to a specific behaviour for some time.

In January 2011, UOKiK received the request of Fresenius Medical Care regarding the acquisition of Eurodial. The undertakings provide inter alia the dialysis services for persons with renal failure.

According to the data of National Health Fund of February 2011, in Poland there operate 273 dialysis centers - public and non-public. Fresenius Medical Care - through its subsidiary Fresenius NephroCare Polska has 49 stations in 15 Voivodeships. It is the largest non-public network of its kind in Poland. Eurodial owns 23 stations in 9 Voivodeships and it ranks it on the third place in terms of outlets providing dialysis treatments.

Dialysis services constitute the guaranteed healthcare benefits. This means that procedures are performed on the patients free of charge. Treatments are reimbursed by the National Health Fund, and the undertakings providing the dialysis must have a contract concluded with the National Health Fund. The rates paid by the National Health Fund are generally the same for all entities, regardless of the region. Dialysis stations do not compete with each other by the price, but only with service quality.

Proceedings conducted by UOKiK showed that the concentration would result in a significant restriction of competition in the provision of dialysis services in two Voivodeships: Wielkopolskie and Zachodniopomorskie

Proceedings conducted by UOKiK showed that the concentration would result in a significant restriction of competition in the provision of dialysis services in two Voivodeships: Wielkopolskie and Zachodniopomorskie. Given the number of stations, dialysis terminals, the number of patients and value of contracts with the National Health Fund, the share of both undertakings would exceed several times the position of others. It was also taken into account that in recent years the share of concentration participants increased significantly and this trend may continue, as well as barriers to entering the market - including high cost of launching a new station.

According to the condition imposed by the President of UOKiK, Fresenius Medical Care has to give up all rights to one own (in Koło) and three acquired dialysis stations - in Poznan, Piła and Kołobrzeg, before 31 December 2012. Sales may be made only to an independent entity that will continue to offer services in dialysis - otherwise it will not be accepted by UOKiK. The company is obliged to provide information on fulfilment of the the requirement, within 30 days of its execution, but no later than on 30 January 2013. Fulfilment of the imposed obligation ensures that implementing the concentration shall not significantly restrict competition.

Conditional decisions are issued by UOKiK rather rarely. Since 2004, it is only 12^th such decision of over 1320. This year, the President of UOKiK for the first time made the consent dependent on the fulfillment of certain conditions by the undertaking. Moreover, since the beginning of 2011, the President has issued 67 consents for mergers and acquisitions, and twice - the concentration prohibition.

A the same time we would like to emphasize that infomation on all antitrust proceedings concerning concentrations carried out by UOKiK, is available at the Office’s website.

Control of concentration will constitute the subject of seminar accompanying the annual meeting of the heads of European Competition Authorities - ECA. The conference will include discussion on practical aspects of implementation of the EU Merger Regulation. The following persons will take part in the conference: Małgorzata Krasnodębska-Tomkiel, the President of UOKiK, Bernd Langheine of the European Commission Directorate-General for Competition and Bruno Lasserre, the President of the French antitrust authority. This will be the first event organized by the Office under the Polish presidency in the Council of the European Union.

Additional information for media:
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Tel. +48 22 827 28 92, 55 60 106, 55 60 314
faks +48 22 826 11 86
E-mail: malgorzata.cieloch@uokik.gov.pl