The Finnish Competition and Consumer Authority (FCCA) initiates further proceedings regarding the proposed acquisition where 21 of Humana Finland’s elderly social service units become part of Mehiläinen.
Mehiläinen Group operates extensively in the healthcare and social services market. In social services, Mehiläinen offers, among other things, residential and home care services for the elderly, as well as residential care services for mental health and substance abuse rehabilitants. The acquisition includes Humana Group’s 19 residential care units, of which 15 offer residential care for the elderly and four offer residential care for elderly mental health rehabilitants. In addition, the acquisition includes two units offering home care and home nursing services.
Based on the FCCA’s initial investigation, the acquisition may have adverse competition effects in the market for elderly residential care services in the regions of Varkaus and Mikkeli, as well as in the market for residential care services for mental health and substance abuse rehabilitants in the North Ostrobothnia and Central Finland wellbeing services counties.
The FCCA considers it important to continue investigating the competitive effects of the acquisition. The further proceedings will examine whether the acquisition may significantly impede effective competition in the Finnish market or a substantial part thereof. As a result, the FCCA may approve the acquisition as such, approve it conditionally, or propose that the Market Court prohibit the deal. The further proceedings may take a maximum of 69 working days. The Market Court may extend the time limit by at most 46 working days.