The Competition Commission has launched an investigation into the merger between a small medical scheme for employees of oil company BP Southern Africa (BPSA) and South Africa’s third-biggest scheme Momentum Health, after a complaint from BP pensioners alleging the deal will scale back their benefits.
Business Live reports that at the heart of the complaint is an allegation that the transaction will end the subsidies they receive from BP, benefits they say were given to them in perpetuity. The Competition Commission’s acting manager for mergers and acquisitions Tamara Paremoer said that if the investigation found significant changes to employee benefits had not been disclosed during the merger assessment, it might change the commission’s finding.
Medical aid mergers require approval from the Competition Commission and the medical schemes regulator, the Council for Medical Schemes (CMS). The report says the Competition Commission approved the merger of BP Medical Aid Society (BPMAS) and Momentum on 13 June without conditions, but the transaction was turned down by the CMS on 30 July.Business Live report