[SINGAPORE] The Competition and Consumer Commission of Singapore (CCCS) has cleared Tamarind Health’s proposed acquisition of tertiary healthcare service provider TalkMed Group on Friday (Jun 27).
The competition watchdog assessed that the proposed transaction will not substantially lessen competition within the Singapore market.
TW Troy, a special purpose vehicle managed by Tamarind Health, proposed to privatise mainboard-listed TalkMed by way of scheme of arrangement, at S$0.456 per share, on Dec 23, 2024.
CCCS said it commenced its review on Jan 13 to see whether the proposed privatisation would infringe Section 54 of the Competition Act 2004, which prohibits mergers that may substantially lessen competition.
It conducted a public consultation from Jan 21 to 31, seeking feedback from stakeholders such as the involved parties’ competitors and insurance service providers.
Based on its assessment of the parties’ submissions and third-party feedback, CCCS concluded that the proposed transaction is unlikely to substantially lessen competition in Singapore in relation to the supply of private medical oncology services.
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Medical oncology refers to the field of medicine that deals with the treatment of cancer primarily with drugs, such as chemotherapy.
CCCS reasoned that patients can choose alternative providers of medical oncology services in both public and private sectors in Singapore, limiting the impact of the proposed merger.
Furthermore, it added that any increase in the parties’ market power upon the proposed transaction would likely be constrained by insurers – who play a “significant role” in affecting how patients select and finance private medical oncology services – as well as the regulatory framework governing the healthcare sector in Singapore.
Tamarind is a pan-Asian oncology-focused group headquartered in Singapore. It is controlled by alternative asset manager Templewater and its affiliates.
As part of the deal, 65 Equity Partners, a Singapore-based global investment firm backed by Temasek, will subscribe for shares in Tamarind Health through its local enterprise fund.
After the transaction, 65 Equity Partners will hold about 18.3 per cent of the voting interest in Tamarind Health, while doctor shareholders will hold about 31.3 per cent.
Shares of TalkMed closed flat at S$0.45 on Friday, before CCCS’ announcement.
