Federal Court approves merger of MBF and Bupa Australia
Release date: 14 May 2008
The Federal Court of Australia today approved the Scheme of Arrangement to combine the businesses of the MBF Group and the Bupa Australia Group, green lighting a significant change in the Australian health insurance industry.
“The Federal Court’s approval of the Scheme is another significant step in the process leading to implementation. When the Scheme is implemented in mid June, the combined group, through scale synergies, will be in a stronger position to limit premium increases and provide improved services,” said MBF Chairman John Conde.
Eric Dodd, who is to be Managing Director of the combined group during the implementation phase, said that the Federal Court’s approval of the Scheme signalled the beginning of a new era for MBF and Bupa Australia.
“Earlier this week MBF’s contributors gave their overwhelming support* to bring together two of Australia’s leading private health insurers, both of which share a strong commitment to customer care and service. We aim to provide Australians with a better choice, offering a national health insurance group which provides a broader range of services with efficient management,” Mr Dodd said.
As a result of the Court’s decision, MBF’s Participating Contributors can expect to receive their cash allocation within 10 business days of the Scheme being implemented, which is likely to be on 16 June 2008.
“Both MBF and Bupa Australia have achieved a longstanding objective of becoming part of a leading private health insurance group with a national footprint, something that, separately, is likely to have taken at least another five years to achieve,” Mr Dodd said.
Richard Bowden, who is to be the Deputy Managing Director and Chief Operating Officer of the combined group, welcomed the Court’s decision and said MBF and BUPA Australia welcomed the opportunity to work together to continue a half century tradition of caring for the health needs of Australians.
“Customers of both health funds will continue to receive the same levels of excellent service at our respective branches, our call centres and through our provider networks,” Mr Bowden said.
The Bupa Group’s Managing Director of International Businesses, Dean Holden said he was delighted MBF contributors had given their overwhelming support for the merger.
“Once implemented today’s Federal Court approval means that the Bupa Group will have invested more than $4billion (AU) into the Australasian healthcare sector since 2002.”
“The Bupa Group is committed to ensuring Australia’s health sector – with its balance of both public and private health services – is sustainable and affordable for customers in the long-term. We are focussed on growing and strengthening our business in Australia for the benefit of our customers, and creating investment and jobs now and in the future,” Mr Holden said.
The combined group will now begin planning for a seamless merger of the businesses in the lead up to implementation in mid June 2008, when MBF will become a part of the Bupa Australia Group.
Once the $2.41billion merger is implemented, the Bupa Australia Group will become a leading voice in health insurance supporting approximately 3 million Australians with a market share of close to 28 percent.
* 329,605 votes were cast in favour of the resolution at a Scheme Meeting held on 12 May 2008 representing 98.33% of MBF’s Participating Contributors present and voting in person.
For media enquiries or interviews contact:
Brian Tyson
Gavin Anderson & Company
Mob: 0413946715
Julian Murphy
BUPA Australia
Corporate Communications
Tel: 03 9937 4345, Mob: 0434 072 024
About BUPA Australia:
The health care needs of more than one million Australians are supported by BUPA Australia, giving the health fund a national market share of 10.1 percent. BUPA Australia is known as HBA in all states except South Australia and the Northern Territory where the customer brand is Mutual Community. The origins of both brands in caring for the health care of Australians can be traced back more than 70 years.
The majority of our customers are located in Victoria (543,000) and in South Australia (355,000).
As part of a strong global health focused group, BUPA Australia continues to lead the industry in product innovation and improved services and benefits for its customers. In addition, BUPA Australia provides customers with travel, motor vehicle, home and contents insurance services.
About MBF:
MBF is Australia’s largest, non-government private health insurer covering nearly 2 million people. MBF provides private health insurance throughout Australia and is the number one or number two private health insurer in Queensland, New South Wales, Tasmania and the Northern Territory. In addition to its core private health insurance business, the MBF group of companies offer life and travel insurance as well as financial planning, superannuation and managed investment products through ClearView Financial Solutions, ClearView Life Nominees and MBF Life.
