Acquirer(s)

  • Medical Benefits Fund (MBF)

Target(s)

  • NRMA Health

Summary

Medical Benefits Fund of Australia Limited (MBF) proposes to acquire NRMA Health Insurance Pty Limited (NRMA).

Market definition

State based markets for the supply of private health insurance and the state based or regional markets for the acquisition of private hospital services by health funds.

Competition analysis

The Commission considered that the proposed was unliekly to substantially lessen competition in the relevant market due to:
*Barriers to entry are not insignificant and the barriers to expansion are not low;
*There are a number of alternative suppliers to whom customers could turn;
*Customers of MBF would appear to have some countervailing power in the form of alternative sources of supply; and
*The proposed acquisition would not appear to remove a vigorous and effective competitor in the relevant markets.

Merger type

Horizontal

Guidelines thresholds

Crossed

Imports above 10%

Unknown

Initiation

Parties

ANZSIC code

7421