Western Australia’s largest health insurer HBF is seeking a AU$4 billion (US$3.2 billion) merger with Sydney-based HCF that would give the combined companies more than 2.5 million companies.
HBF has agreed in principle with HCF to a merger that would create a AU$4 billion (US$3.2 billion) company with a near 20% market share.
The merger, if successful, will make the combined HBF and HCF the nation’s third biggest health insurer, behind Bupa and Medibank Private.
HBF and HCF said they would retain their individual identities and continue to be run by their own management under a new umbrella company guided by a common board of 10 directors.
HBF chief executive officer John Van Der Wielen said his company had been reviewing its strategy to ensure it could continue to provide policyholders with the best possible health cover in a competitive market.
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