Bureau Resolves Competition Concerns With Medical Equipment Merger

OTTAWA, September 16, 2003 — The Competition Bureau has resolved its concerns with the proposed acquisition of Instrumentarium Corporation by the General Electric Company (GE), two major manufacturers and suppliers of patient monitoring equipment.

After an extensive examination, the Bureau concluded that the proposed transaction would likely result in significant competition concerns for patient monitors used in high acuity areas of hospitals and healthcare facilities in Canada. The monitors provide medical personnel with measurements such as blood pressure, pulse rate and electrocardiograph activity. The equipment may also be interconnected with therapy devices (ventilators and anaesthesia machines) and other clinical information systems.

In order to resolve competition concerns in Europe and the United States, GE has already agreed to divest Instrumentarium's worldwide Spacelabs business, which is an important supplier of patient monitoring equipment in Canada. GE has also provided a formal commitment to the European Commission that it will maintain existing and future interfaces on patient monitors, therapy devices and clinical information systems ensuring that third party suppliers can effectively interconnect with their equipment.

At the request of Canada's Competition Bureau, GE has confirmed that the European interface commitment applies on a global basis, and is available to third party suppliers in Canada and elsewhere.

On the understanding that GE will divest the Spacelabs business and apply the European interface commitment on a global basis, the Bureau has resolved its competition concerns and issued a No-Action Letter. In the event that the Spacelabs business is not divested or the interface commitment is breached by GE, the Bureau has the right under the Competition Act to make an application to the Competition Tribunal within three years after the transaction has closed.

The Competition Bureau is an independent law enforcement agency which ensures that all Canadians enjoy the benefits of a competitive economy. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

For media enquiries, please contact:
Tim Weil
Senior Communications Advisor
Competition Bureau
819-953-9271 or 613-296-2189 (cell.)

For general enquiries, please contact:
Competition Bureau's Information Centre
819-997-4282 or toll-free 1-800-348-5358