Servizi Italia, Antitrust begins investigation into Steris operation

The Competition and Market Authority (AGCM) has the start of the investigation was decided towards companies Servizi Italia and Steris. The Antitrust intervention concerns the acquisition of the Steris branch by Services Italya company listed on Euronext STAR Milan and leader in the sector of integrated rental, washing and sterilization services of textile materials and surgical instruments for hospital facilities.

According to what was communicated, within the Steris Branch the activities relating to the supply of surgical instrument sterilization services currently carried out in Italy by Steris will merge, which include: the sterile reconditioning of medical devices, instruments and medical equipment, the maintenance and logistics relating to sterilization services, the rental of surgical instruments and quality validation services.

The Antitrust writes that the concentration operation appears capable of strengthening the already significant position held in the relevant market by Servizi Italia, with the relevant market appearing to be rather concentrated already in the pre-merger phase. Therefore “the operation in question will allow the purchasing company, which already appears to be the market leader pre-merger, to further strengthen its position, acquiring an overall share significantly higher than that of other competitors, in a market whose level of concentration is very high,” the document reads.

“The concerns of a competitive nature relating to the operation in question are valid both in the offer of sterilization services for surgical instruments in the private sector and in the offer of such services in public health facilities – states the AGCM – In fact, the operation involves the elimination of a competitor who participated in approximately 50% of the tenders in which Servizi Italia took part, in a context in which the average number of participants in each individual procedure is in any case limited. Furthermore, Target is one of the main operators in supplying to private structures”.

Ultimately, “the concentration operation appears suitable to determine unilateral effects due to the positioning of the new entity and the removal of an important competitor on the market” and “therefore, it appears likely to hinder effective competition in the national market of surgical instrument sterilization services, creating or in any case strengthening the dominant position of Servizi Italia”.