ΚΥΠΡΙΑΚΗ ΔΗΜΟΚΡΑΤΙΑ Decision CPC: 85/2021 Case Number: 08.05.001.021.072 THE CONTROL OF CONCENTRATIONS BETWEEN ENTERPRISES LAW No. 83(Ι)/2014 Notification of concentration concerning the acquisition of the share capital of the NIPD Genetics Public Company Limited by Medicover Investment B.V Commission for the Protection of Competition: Mrs. Loukia Christodoulou Mr. Panayiotis Oustas, Mr. Aristos Aristidou Palouzas, Chairperson Member Member Date of decision: 20 December 2021 SUMMARY OF DECISION On the 9th of December 2021 the Commission for the Protection of Competition (hereinafter the “Commission”) received on behalf of Medicover Investment B.V (hereinafter the «MIVBr») a notification of a proposed concentration. The notification was filed according to Section 10 of the Control of Concentrations between Enterprises Law 83(I)/14 (hereinafter the “Law”). The notification concerns a concentration, according to which MIVB intends to acquire a part of the share capital of NIPD Genetics Public Company Limited (hereinafter the "NIPD" or “Target’’) . Companies participating at this merger are the following: 1
- Medicover Investment B.V. which is a company duly registered under the laws of the Netherlands and [………]
- Medicover Group is a specialized provider of Diagnostic and Health Services, with an emphasis mainly on the markets of Central and Eastern Europe and India. It is noted that the Medicover Group already holds 20% of the share capital of NIPD Genetics Public Company Limited.
- NIPD Genetics Public Company Limited is a public company duly registered in accordance with the laws of the Republic of Cyprus. NIPD is an innovative biotechnology company that designs, develops, manufactures and provides advanced laboratory tests. NIPD provides genetic services internationally through CAP & CLIA headquarters. It also provides technology transfer and CE-IVD kits. NIPD also provides research and development (R&D) and customized services to pharmaceutical, industrial and academic companies worldwide, as well as clinical laboratory services in Cyprus. This notification concerns a concentration according to which MIBV intends to acquire part of the issued shares and the share capital of NIPD. The Commission, considering the facts of the concentration, has concluded that this transaction constitutes a concentration within the meaning of section 6
(1)(α)(
- ii)of the Law, since it leads to a permanent change of control of the Target, by MIVB. According to the provisions of the Law, and more precisely Articles 20 and 21, the criteria on the basis of which a concentration is declared compatible or incompatible with the requirements of the competitive market concerns the significant obstruction of effective competition in the Republic or in a significant part of it, especially as a result of establishing or strengthening a dominant position in the affected markets. The Commission has concluded that for the purposes of evaluating this concentration, the relevant product / service market is (
- j)the provision for diagnostic services, (
- ii)the sale of diagnostic products and (iii) the provision for supporting services. Any further separation does not differentiate the outcome of the merger assessment. In addition, the Commission concluded that the geographical market for the relevant markets in question is that of the territory of the Republic of Cyprus. 1 he numbers and / or data that are omitted and do not appear both at this point and throughout the text of this decision are covered by business / professional secrecy. Indicative of the omission is the symbol [....]. 2 According to the notification data, there is no horizontal overlap between the participating companies in the relevant markets. Medicover does not have a turnover in the Republic of Cyprus from the provision of diagnostic services, the sale of diagnostic products and the provision of support services beyond the 20% shareholding in NIPD Genetics Public Company Limited. In addition, the notification data does not show any vertical relationship in Cyprus. Taking into account the above, the Commission concludes that there is no affected market according to Annex I of the Law. In addition, there are no other markets in which the notified concentration may have a significant effect. The Commission, on the basis of the factual and legal circumstances, unanimously decided that this concentration does not create or strengthen a dominant position as there is no affected market and therefore the concentration does not raise serious doubts as to its compatibility with the operation of the competition in the market. Therefore, the Commission, acting in accordance with section 22 of the Law, unanimously decided not to oppose the notified concentration and declare it as being compatible with the operation of the competition in the market. Loukia Christodoulou Chairperson of the Commission for the Protection of Competition 3