Bonitas Medical Fund v Nedgroup Medical Aid Scheme (LM092Oct21) [2021] ZACT 75 (9 November 2021)

Bonitas Medical Fund v Nedgroup Medical Aid Scheme (LM092Oct21) [2021] ZACT 75 (9 November 2021)

The Tribunal found that the proposed merger between Bonitas Medical Fund and Nedgroup Medical Aid Scheme would not substantially prevent or lessen competition in either the broad market for medical schemes or the narrow market for closed medical schemes. The merged entity's market share would remain low, and sufficient competition would persist from numerous other schemes. NMAS members would have access to a wider range of benefit options post-merger, with most experiencing similar or lower contributions. No adverse effects on employment or spread of ownership were identified, as both schemes are member-controlled and NMAS has no employees. The Council for Medical Schemes raised no...

Citation
[2021] ZACT 75
Parties
Applicant: Bonitas Medical Fund; Respondent: Nedgroup Medical Aid Scheme
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 November 2021
Case Number
LM092Oct21
Procedural Posture
Merger Application / Final Determination
Outcome
Merger approved unconditionally.
Judges
Y Carrim, E Daniels, F Tregenna
Legal Topics
Large Merger, Medical Schemes Market, Public Interest Considerations, Horizontal Overlap, Market Share Analysis
Competition Law Commercial and Corporate Large Merger Medical Schemes Market Public Interest Considerations Horizontal Overlap Market Share Analysis

Case Brief

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Parties

Bonitas Medical Fund

Applicant

Nedgroup Medical Aid Scheme

Respondent

Procedural Posture

Merger Application / Final Determination

Legal Issues

  1. 1 Whether the proposed merger between Bonitas Medical Fund and Nedgroup Medical Aid Scheme is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns, including effects on members' contributions, employment, and spread of ownership.

Ratio Decidendi

The Tribunal found that the proposed merger between Bonitas Medical Fund and Nedgroup Medical Aid Scheme would not substantially prevent or lessen competition in either the broad market for medical schemes or the narrow market for closed medical schemes. The merged entity's market share would remain low, and sufficient competition would persist from numerous other schemes. NMAS members would have access to a wider range of benefit options post-merger, with most experiencing similar or lower contributions. No adverse effects on employment or spread of ownership were identified, as both schemes are member-controlled and NMAS has no employees. The Council for Medical Schemes raised no...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Bonitas Medical Fund and Nedgroup Medical Aid Scheme is approved in terms of section 16(2)(a) of the Competition Act, 1998.
  • A Merger Clearance Certificate is to be issued in terms of Competition Tribunal Rule 35(5)(a).