The Georgian National Competition Agency has approved the acquisition of a 100% stake in “Amtel Hospital First Clinic” by Geo Hospitals.
According to the decision of the Agency, the expected concentration (merger) is compatible with the competitive environment. The relevant market is low concentrated, and no substantial change takes place.
According to the information received from 58 economic agents operating in the market, it has revealed that at the stationary level - the market volume is 1 126 838 216 GEL, and the market concentration index (HHI) is - 413, indicating a low-concentrated market.
At the outpatient level - the market volume is 427 251 439 GEL. The HHI - Market Concentration Index is - 646, indicating a low concentrated market. Consequently, with the merger of the two companies, the market is growing slightly at the stationary and outpatient levels.
Nowadays, Evex Hospitals is the largest undertaking in Georgia at the stationary level, and Aversi Clinic largest undertaking at the outpatient level.
According to the law " on Competition," a merger is subject to an agreement in Georgia if the joint turnover of the two companies exceeds 20 million GEL and each of them is not less than 5 million GEL. Merging bypassing the Agency includes imposing a penalty of up to 5% on the buyer. The concentration fee is 5000 GEL.
In 2021, 21,423 concentrations have been implemented in the country. 2 of them with and 1 without prior notification to the Agency. Accordingly, the penalty was imposed on the undertaking as provided by law. The Consent has been issued after studying the issue. Currently, it is in the study mode - the merger of two companies operating in the construction and construction materials trade market.
