Cinven has placed a €3bn bet on the European diagnostic laboratory space, by agreeing to pay a higher than expected €1.85bn for synlab Group, a multiple of just over 12 times current EBITDA. It will combine synlab with Labco to create a truly Pan-European lab group with pro-forma 2014 sales of just over €1.4bn, nearly twice that of its nearest rival. But why bet €3bn on a sector where tariffs are falling and operators have no control over pricing? And could the French authorities block the deal?