Brussels, 16/06/2005 (Agence Europe) - The European Commission has cleared the proposed acquisition of Mölnlycke Health Care AB (“Mölnlycke”), a Swedish supplier of single use surgical and wound care products, by Apax Partners, a group of investment funds. After examining the transaction, the Commission concluded that it would not significantly impede effective competition in the European Economic Area or any substantial part of it. Apax Partners is a group of pan-European investment funds making investments in a range of industry sectors. It is active in the medical sector through Medlock Medical Limited, a company active in various medical products including wound care products, and Regent Medical Limited active in surgical gloves and skin antiseptics. Mölnlycke manufactures and sells single use surgical products and wound care products.
In the field of surgical products, the Commission's examination of the transaction focussed on the vertical relationship between the companies in the field of Custom Procedure Trays (packages of surgical products) and the effect of the new entity's extended surgical product range. It concluded that the presence of strong competitors and the availability of alternative sources of supplies will ensure that those markets will remain competitive after the transaction. The Commission also took into account the strong bargaining power of national health agencies and hospitals as well the regulatory constraints on prices set by national reimbursement systems.