AXA/MBFpossible merger

The Australian Competition and Consumer Commission will investigate the possible merger of AXA Australia Health Insurance and the Medical Benefits Fund of Australia Limited, ACCC Chairman, Professor Allan Fels, said today.

"The ACCC has contacted both parties seeking information as to whether or not they are considering a merger.

"Any such merger would be closely examined by the ACCC in the context of both the national and/or State markets.

"The present market share of Medibank Private Limited is about 30.7 per cent, MBF 16.9, and AXA 9.9, so a merged entity would have an approximate market share of 27 per cent.

"The next two largest organisations are HBF Health Funds Inc, with 8.8 per cent, and Hospitals Contribution Fund of Australia Limited (HCF), 7.3.

"The ACCC has a policy of looking closely at mergers where, following the merger, the market share of the top four firms makes up around 75 per cent or more of the market.

"In this case, the share would be very close to 75 per cent and therefore would be closely examined".