The Competition Commission has recommended that the Competition Tribunal approve the proposed transaction whereby Fedhealth intends to acquire Medshield.
“The Commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market,” the Commission said in a statement on 22 August.
Fedhealth had 56 018 principal members and 100 357 beneficiaries as of 31 December 2024, with an average beneficiary age of 44 years, according to the scheme’s 2025 Member Report. Fedhealth had a robust solvency level of 32.33%, well above the statutory minimum of 25%.
Medshield had 71 457 principal members and 138 798 beneficiaries as of 31 December 2024, with an average beneficiary age of 37.65 years, according to its annual financial statements. Medshield had a solvency ratio of 60.8%, significantly exceeding the regulatory requirement.
The proposed transaction involves Fedhealth’s full acquisition of Medshield through an amalgamation process.
To address public interest concerns, no employees will be retrenched as a result of the merger for two years following the merger implementation date.
Fedhealth recently became Sanlam’s strategic health partner after Sanlam parted ways with Bonitas, positioning Fedhealth as its exclusive open medical scheme provider.
Read: Sanlam’s split with Bonitas paves the way for exclusive Fedhealth partnership
Medshield’s administrator, Medscheme, is a subsidiary of the AfroCentric group, which has been majority-owned by Sanlam since May 2023.
