Southern Cross applies for clearance to acquire Aetna Health
Published20 Jul 2000
The Commerce Commission has received an application from Southern Cross Medical Care Society for clearance to acquire all the shares in Aetna Health (NZ) Limited.
Southern Cross is New Zealand-based and provides health and travel insurance, owns 13 hospitals and is involved in work place injury prevention and claims processing.
Aetna is ultimately wholly owned by United States company Aetna Inc., which is reorganising its international businesses. It provides health insurance, health services to the Health Funding Authority and programmes to manage work place injuries.
The Commission's Commerce Act Manager, Geoff Thorn, said that the Act prohibits business acquisitions that result in dominance being acquired or strengthened in any market.
Parties can apply for a clearance, which the Commission will grant if it is satisfied that dominance is not acquired or strengthened. A clearance, if granted, protects an acquisition from court action under the Act.
The Act gives the Commission 10 working days in which to make its decision but allows for extension of time if necessary. Working day 10 will be Tuesday August 1.
Southern Cross made its application on Tuesday afternoon and asked that the Commission treat it as confidential until 9am today so that both companies could advise their staff and Aetna could make the necessary United States notifications. The Commission agreed to the request.
Public copies of Southern Cross' application are available from reception at the Commission's Wellington office, level 7, Landcorp House, 101 Lambton Quay.
