Lidwala Insurance Acquires United Health Insurance Limited’s Health Book

The Eswatini Competition Commission has approved the acquisition of United Health Insurance Limited’s Health Book by Lidwala Insurance.

This is contained in the Commission’s report of mergers and acquisitions approved in the last quarter of 2022/23.

Lidwala Insurance is a company incorporated and registered by the laws of Eswatini and provides short-term insurance services in the country.

The company offers custom-made Alternative Risk Transfer Solutions (“ART”) for the insuring public and is an authorized insurer, registered with the Financial Services Regulatory Authority (“FSRA”).

United Health Insurance is also a company incorporated and registered by the laws of Eswatini and is in the business of providing health/medical insurance and is registered with FSRA.

The ComCo noted that in its decision, it considered the products of the firms and concluded that the relevant market is the provision of health insurance in Eswatini and the transaction only relates to an acquisition of an asset, the health book belonging to a failing firm.

The Commission further observes that Lidwala Insurance is venturing into a new market of health insurance; as a result, there are no overlaps.

“As such the transaction is categorized as a phase 1. The market shares in the relevant market and market concentration will not change due to the transaction. Other factors such as countervailing power and barriers to entry will not be affected by the transaction. As such we conclude that the transaction is not likely to result in a substantial lessening or prevention of competition in the market. Therefore, the transaction was approved without conditions”.

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