KPPU issues Opinion on Shares Acquisition by Siloam Group.
Jakarta (28/3) – KPPU has conducted an assessment on the acquisition of PT Grha Ultima Medika shares by PT Mahkota Buana Selaras on March 27, 2018. This shares acquisition is a transaction that has fulfilled the provisions of Government Regulation No. 57 Year 2010.
PT Mahkota Buana Selaras is a subsidiary of the Siloam group of companies active in the industry of providing health care services (hospitals) in several regions of Indonesia. PT Grha Ultima Medika conducts activities in healthcare providers and currently has 1 (one) hospital in Mataram City, West Nusa Tenggara Province.
Based on the collected information, the Commission considers that the parties are doing their activities in the same industry, but when reviewing the industry’s characteristic, we seen there is a difference in its geographic market, where the Siloam business group does not yet have a hospital in Mataram City. However, in reviewing the dominance of Grha Ultima Medika hospital, KPPU calculates market share of Grha Ultima Medika hospital in Mataram City, Lombok Island and National market share of Siloam group following the acquisition. Based on the calculation of market share, KPPU assesses that the market share of Grha Ultima Medika hospital market is not significant, so it will not affect the market structure of hospitals in Mataram City, Lombok Island and Nasional market.
Based on the above analysis, the Commission considers that the acquisition of PT Grha Ultima Medika shares by PT Mahkota Buana Selaras has no impact on the health care service provider (hospital) in Mataram City, Lombok Island and the national. Therefore, the Commission issued the opinion that there was no allegation for monopolistic practices and / or unfair business competition due to the acquisition of PT Grha Ultima Medika shares by PT Mahkota Buana Selaras.