Benefiting from the super-rich valuations offered by Siemens Healthineers for the proposed acquisition of Varian Medical, Elekta, a direct competitor, surged c.15% yesterday. With the No.1 player in the oligopolistic radiation therapy market now grabbed, there is a possibility that the No.2 player, Elekta, might also be grasped by an industry bigwig. In our view, Royal Philips, which has been a strategic partner for Elekta, might be interested in the family-owned business in the mid-term.
