KPPU completed its Assessment on the Acquisition of PT Sumber Bahagia Sentosa by PT Mahkota Buana Selaras.

Jakarta (28/3) – KPPU has completed its assessment process on the acquisition of PT Sumber Bahagia Sentosa (SBS) by PT Mahkota Buana Selaras (MBS) on 27 March 2018. The assessment was initiated by the notification from PT Mahkota Buana Selaras (MBS) related to the acquisition of 100% shares of PT Sumber Bahagia Sentosa (SBS) on August 2, 2017. This shares acquisition is in line with MBS’s objective to expand their hospital network in national market. After the acquisition, the new owner plans to develop Putera Bahagia Hospital by increasing the capacity of their bed and improving hospital equipment and facilities.

MBS is part of Siloam Group which has a network of hospital services in several cities in Indonesia. Prior to its acquisition, Siloam Group manages and operates 23 hospitals, consisting of 7 (seven) hospitals in Jabodetabek and 16 (sixteen) hospitals located in Java, Sumatera, Kalimantan, Sulawesi, Bali and East Nusa Tenggara. SBS is the operator of Putera Bahagia Hospital which is located in Cirebon, West Java.

In the analysis, KPPU considered that the acquisition is carried out in the different relevant market, since Siloam Group and SBS are not in the same geographic market. From the view of market share, KPPU found that their market share is considered low (below 5%). In addition, the increase of Siloam Group’s market share with the increase of this ownership is also insignificant both nationally and among group of private companies. Therefore, KPPU considered that Siloam Group does not have significant market power to conduct anti-competitive behavior. Therefore, in its Opinion, KPPU concluded that there were no allegations of monopolistic practices and unfair business competition due to the acquisition of these shares.