News: HLS UPDATE 1-Regulator flags concerns on Australian Clinical's buyout offer for Healius

(Adds comment from ACCC in paragraph 3 and context about the bid in paragraph 4)

July 20 (Reuters) - Australia's competition watchdog on Thursday raised concerns over Australian Clinical Labs' (ACL) A$1.52 billion ($1.03 billion) buyout offer for medical centre operator Healius (HLS) , which had rejected the proposal in May.

The Australian Competition and Consumer Commission (ACCC) said the acquisition would lessen competition in the pathology services markets.

"The significant reduction in competition could lead to adverse consequences for patients, including reduced levels of bulk billing, higher co-payments for privately billed services, collection centre closures, less frequent collection of samples, or longer turnaround times," ACCC Commissioner Stephen Ridgeway said in a statement.

Australian Clinical Labs, one of the country's largest pathology services providers, has been pursuing Healius shareholders to accept its offer after they rejected its bid, saying it had "no cash and no premium" and was "plainly inadequate."

The company said the ACCC statement was as expected due to the nature of the acquisition.

($1 = 1.4775 Australian dollars)