BUPA gets final OK for A$2.41 bln Australia deal

SYDNEY (Reuters) - An Australian court on Wednesday approved a A$2.41 billion ($2.3 billion) friendly takeover of MBF Group, the country's second-largest private health fund, by British health insurer BUPA.

Court approval was the last hurdle for BUPA, after MBF members approved the merger in a vote on Monday.

The combined group will insure around 3 million people and have a share of the health insurance market of close to 28 percent, BUPA said. Its main rival, the government-owned Medibank Private, had a market share of 29 percent as of June 30, 2007.

The deal comes amid concern about the impact on private health insurers of a government move to raise the earnings threshold at which people must pay a surcharge for Australia's state health system or take private insurance.

Shares in health insurer NIB Holdings Ltd (NHF.AX: Quote, Profile, Research), which listed last November, have tumbled 21 percent so far this week on concern the changes could see more people drop private health insurance, making it less profitable.

($1=A$1.06)

(Reporting by Ben Wilson)