Bupa welcomes MBF policyholders merger vote

The policyholders of MBF, Australia's second largest health fund, today voted overwhelmingly in favour of a proposed merger with Bupa Australia.

329,605 votes were cast in support of the merger, representing 98.33 percent of the vote.

In December last year, the MBF Board announced its support for Bupa's A$2.41 billion proposal to combine the two businesses and create Australia's leading private health fund.

Since then, approval for the merger has been granted by the MBF Council and the Australian Competition and Consumer Commission.

Bupa chief executive Val Gooding said: "The outcome of today's vote by MBF's policyholders is a strong endorsement of their support for the proposal to bring MBF and Bupa Australia together.

Today marks the penultimate step in the formation of a national health insurer for Australia, which will deliver significant benefits for existing and new customers of both health funds as well as the wider Australian health sector.

"The merged group will have access to a wealth of health expertise, allowing it to take a leadership role and, importantly, help keep private health insurance more affordable for Australians." The merger is now subject to final approval from the Australian Federal Court, which is expected on 14 May 2008.

The £1 billion merger between Bupa Australia and MBF represents both a significant geographic shift for Bupa and the largest deal ever undertaken by the leading health and care company.

As a result of the deal, for the first time, over half of Bupa's revenues will be generated outside of the UK.

In addition to the merger of Bupa Australia with MBF, Bupa has recently announced a number of major overseas acquisitions.

Late last year the company purchased DCA Agedcare Group in Australia and New Zealand, adding 96 homes and almost 7,000 beds to its portfolio of care homes, making it a leading player in these markets.

It also added the Euroresidencias group of 13 existing care homes and three new builds to its Spanish business.

In January this year, Bupa also completed the acquisition of US based Health Dialog, in which it was the founder shareholder in 1997.

Health Dialog is a leading provider of chronic condition management and 'shared decision making' services, which involves supporting patients in choosing between different treatments.

In Australia, Bupa trades as HBA and Mutual Community.

Bupa first entered the Australian market in 2002 with the purchase of the businesses from AXA Asia Pacific.

Currently, Bupa Australia covers more than a million Australians.

With MBF the combined health funds will create a health insurer with a national footprint providing coverage for close to three million customers.

Forty four per cent of Australians have private health insurance.

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