WASHINGTON (Legal Newsline) - The Federal Trade Commission (FTC) announced March 28 that DaVita Inc., a national outpatient kidney-dialysis chain, will divest ownership interest in seven clinics in order to complete its $358 million acquisition of competitor Renal Ventures Management LLC.
DaVita is the United States’ second largest provider of outpatient dialysis services, while Renal Ventures is the seventh largest.
The FTC alleged a merger between the two companies would lead to significant anti-competitive effects in different U.S. markets. These markets include Brick, Clifton, Somerville, Succasunna and Trenton in New Jersey, as well as Denton and Frisco in Dallas.
The merger would cause either a monopoly or a reduction of competitors from three to two in those markets, according to the FTC.
To settle the allegations, DaVita will divest a clinic in each of the affected markets -- five in New Jersey and two in Dallas.
The FTC voted 2-0 to issue the complaint and accept the proposed consent order, which is currently subject to public comment until April 27. After the public comment period, the FTC will decide whether to finalize the order.