May 31, 2021

CCI Approves Acquisition of 100% of the Shares of Common Stock of Varian Medical Systems Inc. by Siemens Healthineers Holding I GmbH.

On February 10, 2021, CCI approved the acquisition of 100% and sole control of Varian Medical Systems Inc. (‘Varian’) by Siemens Healthineers Holding I GmbH (‘SHS’). [1]  

SHS is a wholly-owned subsidiary of Siemens Healthineers AG (‘Siemens’). It is not engaged in any business activity.

Siemens is a public company incorporated under the laws of Germany and is a global provider of healthcare solutions and services. Its business is divided into three broad categories: (i) imaging; (ii) laboratory diagnostics; and (iii) advanced therapies. In India, Siemens is present through its subsidiaries.

Varian is a public company listed on the New York Stock Exchange and is a global provider of medical devices and software solutions for treating cancer with radiation therapy and other advanced treatments. Its business is broadly divided into three segments: (i) oncology; (ii) proton solutions; and (iii) interventional solutions.

CCI observed that there are no horizontal overlaps in the business activities of SMS, Siemens and Varian. However, the medical imaging and laboratory diagnostics business of Siemens and the interventional oncology solutions, radiation therapy equipment, oncology software and treatment, pathology/laboratory services and general acute care hospital of Varian, could be considered to exhibit vertical or complementary overlaps.

CCI observed that the upstream market of diagnostic imagining equipment is fragmented with the presence of known players. Similarly, the upstream market of laboratory diagnostic equipment is fragmented with the presence of several known players. The downstream market is also characterised by the presence of several players in each of these segments with significant market share compared to Varian. Given the presence of several parties at this level, CCI did not find any ability to foreclose competition.

Further, Varian operates a hospital and fourteen oncology centres across 12 cities in India. Thus, a vertical relationship exists with Siemens, who supplies imaging equipment. The market share of Varian in the overall segment for oncology treatment is less than 1% and this segment is characterised by the presence of well-known hospitals and standalone oncology centres.

Thus, there was no potential for competition concerns arising out of the combination and hence was approved by CCI.


[1] Combination Registration No C-2020/12/798




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