Medibank, Health Services plan to merge

(AAP) Medibank Private and Health Services Australia are planning to merge.

Health Services Australia (HSA) provides occupational and travel health services to government and corporate bodies.
Finance Minister Lindsay Tanner said the merger would enable the creation of a
national health prevention and management capability.
"This move will place Medibank in a better position to support the Australian
government's preventative health agenda while enhancing the value of these two
businesses for the taxpayers," he said.
Before the merger, HSA will return $27 million of its retained earnings to the
federal government.
This will account for about three years worth of HSA's future dividend stream that
will no longer flow to the commonwealth.
The merger is subject to final approval from the Australian Competition and Consumer
Commission.