Philips, Al Faisaliah in 50-50 JV

Updated 01 October 2012
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Philips, Al Faisaliah in 50-50 JV

RIYADH: Royal Philips Electronics and Al Faisaliah Medical Systems (FMS), a subsidiary of Al Faisaliah Group, signed an agreement yesterday to set up a 50-50 joint venture to sell Philips health care solutions and services across the Kingdom.
Prince Mohammed bin Khaled Al-Abdullah Al-Faisal, president and chief executive officer of the Al Faisaliah Group and Philips Chief Executive Officer Frans van Houten signed the deal.
The proposed transaction is subject to governmental approval and certain contractual and other closing conditions, and is expected to close in the first half of 2013. Financial details of the agreement were not disclosed.
The joint venture will combine Philips' strong health care portfolio, including medical imaging systems, patient monitoring devices and clinical information solutions, with FMS' recognized knowledge of the market requirements and strong position in Saudi Arabia, the largest economy in the Middle East by GDP.
The Saudi Arabian health care market is estimated to grow by 8 percent annually between 2013 and 2017, driven by targeted government spending on health services and hospital infrastructure.
"Through the partnership between Philips and Al Faisaliah Medical Systems, we combine Philips' clinical expertise and innovations, with Al Faisaliah Medical Systems' thorough knowledge of local customer needs and requirements supported with our talented staff and strong infrastructure," Prince Mohammed bin Khaled said.
"We expect that the joint venture (JV) will contribute to new levels of health care services for the people of Saudi Arabia."
Over the past 35 years, we have been working diligently on developing and investing extensively in health solutions and systems through Al Faisaliah Medical Systems, the prince said, adding that by partnering Phillips and Al Faisaliah Medical Systems, the two parties combine the strength of scientific research and innovations that Philips represents.
"By partnering with Al Faisaliah Medical Systems in a joint venture, Philips can accelerate its growth in the important Saudi Arabian market for health care products, services and solutions," said Houten. "We have built a strong and trusted relationship with FMS over the past 40 years, and with this joint venture we are now taking the next step to address important health care opportunities in a growth market."
The joint venture with FMS builds on Philips' ambition to better serve the needs of local markets and respond to the specific health care needs of the population in Saudi Arabia.
In addition, the joint venture will facilitate a focus on developing the next generation of skilled Saudi health care professionals through dedicated education and training programs.
Royal Philips Electronics is a diversified health and well-being company focused on improving people's lives through meaningful innovation in the areas of health care, consumer lifestyle and lighting.
Headquartered in the Netherlands, Philips posted 2011 sales of 22.6 billion euros and employs approximately 122,000 employees with sales and services in more than 100 countries. The company is a leader in cardiac care, acute care and home health care, energy efficient lighting solutions and new lighting applications, as well as male shaving and grooming, home and portable entertainment, and oral health care.
Al Faisaliah Medical Systems (FMS), a subsidiary of Al Faisaliah Group Holding Co., was founded in 1973 and based in Saudi Arabia with a vision to be the leading health care solution provider in the Middle East.
It is currently operating in 6 Gulf and Levant countries with 19 offices throughout the region and over 700 employees. FMS is a major player in offering optimized wide range of services, providing planning, identification, supply, management, and design services to any health care structure in any country through continuous collaboration and partnership with international health care leaders.
FMS' mission is to serve the health care community by offering innovative and quality solutions and services at competitive values to customers, and to leverage the quality of health care services in the region by being trendsetters and making the new de-facto standards. Through its patented CardioSpace program FMS dominates the market in turnkey cardiology projects in Saudi Arabia.


India antitrust watchdog issues advisories to DP World, Maersk units operating at Mumbai port

Updated 15 min 51 sec ago
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India antitrust watchdog issues advisories to DP World, Maersk units operating at Mumbai port

  • The Competition Commission of India last year ordered a probe into suspected antitrust violations by DP World and Maersk units
  • The antitrust dispute at the JNPT is based on so-called inter-terminal transfers

NEW DELHI: India’s antitrust watchdog has ordered Denmark’s A.P. Moller-Maersk and Dubai’s DP World to withdraw certain customer advisories which it said could hamper growth of the country’s largest container port in Mumbai, a document seen by Reuters showed.
The Competition Commission of India (CCI) last year ordered a probe into suspected antitrust violations by DP World and Maersk units at the terminals they operate at state-owned Jawaharlal Nehru Port Trust (JNPT).
Handling 66 million tons of cargo in the last fiscal year to March, JNPT is critical to India’s international trade. The port handles more than half of India’s traffic in shipping containers each year.
The probe was ordered as the CCI found merit in a complaint filed by Singapore’s PSA International, which alleged the rival duo had created barriers to hinder the growth of PSA’s terminal by colluding on certain charges they levy at the port.
Though the terminal operators handle each other’s containers to help boost the port’s efficiency, PSA had alleged that DP World and Maersk last year issued advisories aimed at discouraging port users from sending PSA’s containers to their terminals.
In an order issued by the CCI on Jan. 15, the watchdog ordered Maersk and DP World units to withdraw those advisories, saying it “smacks of anti-competitive” conduct.
The advisories, if not withdrawn, would cause “irretrievable damage or losses” not only to PSA, and would not augur well for the port’s development, according to the order. It has not been made public.
“This is likely to generate unwarranted uncertainty, chaos, discontent and anxiety among shipping lines and customers,” the CCI said.
The order is only an interim measure, and the wider probe continues.
A DP World spokesperson said the company had not received any such order from the Indian watchdog, but it was “committed to ensuring” it complies with all laws.
A.P. Moller-Maersk, the world’s biggest container shipping group, did not respond to queries. PSA, which is owned by Singapore government-owned investment fund Temasek Holdings, declined to comment.
The antitrust dispute at the JNPT is based on so-called inter-terminal transfers.
Under the system, freight trains arriving at JNPT typically carry containers destined for several terminals, but stop at just one that handles all the cargo on a given day. Other operators then collect their containers by truck for loading at their own terminals. A similar procedure is followed, in reverse, when imported containers are unloaded.
DP World’s advisory had said the inter-terminal operations with PSA were “inefficient and unviable.” Maersk had said its terminal “shall not be responsible” for handling containers to and from PSA-terminal bound trains.
Both the companies denied PSA’s allegations while arguing to the CCI that the advisories were based on “commercial justifications,” the order said.
Units of Maersk, DP World and PSA operate four of the JNPT port’s five terminals, with the fifth owned by the government. The PSA terminal, inaugurated in February, is planned to be the largest, expected to nearly double JNPT’s capacity.