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Competition Commission recommends blocking hospital merger

By  |  January 19, 2012

The Competition Commission of South Africa recommends to the Competition Tribunal that the merger between Joint Medical Holidngs and Life Healthcare Group be blocked. The two healthcare groups own hospitals in South Africa, with overlap in the Durban area. The Competition Commission is concerned that the deal would thus create regional dominance in the Durban area and undermine the bargaining power of Designated Service Provider Networks. The anticompetitive effects would then lead to costlier healthcare.

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    More on the Competition Commission’s recommendation here.

     

    Related content: South African Merger Thresholds Increased (Heather Irvine, Norton Rose)