Business Practices in South African Healthcare Bid Questioned

A study conducted by Rand Merchant Bank on South Africa's private healthcare groups, which was leaked to local media sources, has indicated that anti-competitive practices exist in the sector. The reports appeared at a series of hearings into the planned acquisition of Afrox Healthcare by a black empowerment consortium.

Afrox's former parent company, African Oxygen, decided to sell the company in 2003, but media reports suggest that rival healthcare groups Medi Clinic and Netcare now strongly oppose the sale. Medi Clinic was originally one of the consortium partners, but withdrew after questions were raised over its close involvement with the black empowerment group, as well as its plans to acquire hospital assets from Afrox. Competition authorities have conditionally approved the acquisition.