Bonita's Merger Case Study

Decent Essays
The rationale for this merger for Bonita's was to improve the target firm's barganing power with hospital groups and strengthen it as a competitor. For Pro Sano the rationale is to secure the continuation of the coverage provided to its members and beneficiaries by mitigating the risk of its likely insolvency. The market for medical schemes administration was not assessed further as there was no overlapping activities of the merging parties. The Commission considered that Bonitas uses Medscheme as its administrator and Pro Sano is self administered and concluded that there was no overlap in the activities of the merging parties. The geographic market for the services-national. No public interest concerns were raised. The Commission was thus

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