About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Friday, October 28th, 9:16AM
Latest Headlines

Southern Cross challenge starts

The Commerce Commission yesterday began its Court of Appeal challenge to Southern Cross taking full control of Aetna Health.

Tuesday, November 27th 2001, 11:04PM

The commission has appealed a High Court ruling allowing Southern Cross to buy Aetna and keep hold of its 40,000 policies.

The hearing is expected to last three days.

Initial arguments centred on the commission’s powers to grant "clearances" when it doesn’t consider a potential takeover to be anti-competitive under the Commerce Act.

Southern Cross applied for a clearance to buy Atena three times. On the first two occasions, the commission declined. The third application, which included a promise to sell all of Aetna’s policies, was granted.

Lawyers for the commission said the competition watchdog was obliged to decline clearance applications unless it was satisfied an acquisition wouldn’t breach the act.

It did not have leeway to give applicants the benefit of the doubt.

In Aetna’s case, there was some uncertainty about the ability of new players to enter the health insurance market and compete with the enlarged Southern Cross group.

This uncertainty meant the commission had to decline the initial applications for clearance, its lawyers said.

Earlier this year the High Court in Auckland ruled that Southern Cross wouldn't have a dominant position by buying Aetna, as the barriers to entry in the market were very low.

The case continues today when lawyers for Southern Cross will begin their arguments.

« RSA sets up broker committeesBallantyne reveals why she left Sovereign »

Special Offers

Commenting is closed



Printable version  


Email to a friend
Strategy Thoughts
News Bites
Latest Comments
  • Littlewood itching to get started on robo launch
    “Gee Michael it didn't work in the captive market of Fletcher's so why would it work now or was it the marketing that let...”
    2 days ago by gavler
  • TPD a higher hurdle to pass
    “TPD claims, which are based not only on the medical condition suffered but also inability to work ever again (either at all,...”
    3 days ago by Steve Wright
  • KiwiSaver risk reward just 2.1%
    “@ Non-aligned Oh, you read the whole thing? I stopped at the 6th word - Mellville......”
    7 days ago by Dirty Harry
  • KiwiSaver risk reward just 2.1%
    “The Milford Acvtive Growth KiwiSaver was not either the best or even second best performing KiwiSaver Fund for the most recent...”
    7 days ago by non-aligned AFA - North Shore
  • Wait continues for FAA detail
    “I am not sure of your background Craig and it's not often i agree with Brent but it is important to know what background...”
    8 days ago by gavin austin adviser business compliance
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News


Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
Site by Web Developer and eyelovedesign.com