Phodiclinics’ Acquisition of New Protector

Author :

Eulalie Metton; John Luiz

Pages :

12

Product Type :

Case

Reference # :

WBS-2010-14b

Teaching Note :

Institute:

Wits Business School

Setting:

Johannesburg, South Africa

Year:

2006

Keywords:

Economics, competition

Summary/Abstract:

On 31 October 2006, executives at the Council for Medical Schemes (CMS) and private hospital group Netcare were eager to hear the Competition Tribunal’s decision regarding the acquisition of the New Protector Group hospitals by Phodiclinics (Pty) Ltd (a division of the Medi-Clinic Group) and DHJ Defty. Phodiclinics had made the bid in 2005 after New Protector had been placed under provisional liquidation in late 2004. On 3 March 2006, the Competition Commission had recommended to the Tribunal that the transaction be approved without conditions.