Portman Healthcare / Dentex Healthcare merger inquiry
| Decision Date | 09 December 2022 |
| Date | 09 December 2022 |
| Subject Matter | Mergers |
| Court | Competition and Markets Authority (EW) |
Anticipated acquisition by Portman
Healthcare (Group) Limited of Dentex
Healthcare Group Limited
Summary of the CMA’s decision on relevant merger
situation and substantial lessening of competition
1. The Competition and Markets Authority (CMA) has found that Portman Healthcare
(Group) Limited (Portman)’s anticipated acquisition of Dentex Healthcare Group
Limited (Dentex) (the Merger) gives rise to a realistic prospect of a substantial
lessening of competition (SLC) in the provision of private and NHS dental
treatments in certain local areas, and in relation to competition between dental
practices for NHS orthodontic contracts tendered in one regional area. Portman and
Dentex are together referred to as the Parties or the Merged Entity.
2. Portman and Dentex are two of a relatively small number of large corporate dental
groups active in the UK and are currently the fourth and fifth largest corporate
groups in the UK (by number of practices). Portman currently operates 209 dental
practices in the UK and Dentex currently operates 149 dental practices in the UK.
Both Parties have grown in recent years, partly via acquisitions. They focus on
providing private dental treatments, but both also provide NHS dental treatments to
patients.
3. The CMA assessed the potential impact of the Merger on competition for patients of
private and NHS dental treatments at the local and national level. Dental practices
also compete to win contracts to provide NHS treatments, which are tendered by
NHS Integrated Care Boards (ICBs) for the geographic area for which they have
commissioning responsibility. The CMA therefore also assessed the potential impact
of the Merger on competition for such NHS contracts.
4. At the local level, the CMA considered the impact of the Merger on competition in
the areas surrounding each of the Parties’ dental practices (six miles for NHS dental
treatments and eight miles for private dental treatments). The CMA considered that
competition concerns would arise in any local area where the Parties overlap and
would have a combined share of (i) 35% or more of NHS dental treatments, or (ii)
30% or more of sites offering private treatments, provided in each case the Merger
gives rise to an increase in the Parties’ combined share of at least 5%.
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