Global healthcare giant BUPA has slashed its spend on external legal fees after inviting firms to offer more competitive rates as part of its tender process.

General counsel Paul Newton began reviewing the company's M&A, litigation and procurement advisors in February. After creating a shortlist, the firms were invited to render their services at lower rates in an e-auction style process. It is understood that the review has led to a 30% reduction in the company's legal costs.

Initially, each of the three areas was served by four firms, but following the review, the M&A panel has been split into two – one for large and the other for small transactions – and will be covered by five firms. The litigation and procurement panels will now host three firms each.

While the panels are still being finalised, Beachcroft, Mills & Reeve and Wragge & Co are all thought to have secured roles on the M&A panel, while Addleshaw Goddard, Eversheds, Walker Morris and Weightmans have also landed work with the company.

Other BUPA advisor rosters, including its panel of IT advisers, are likely to be reviewed in a similar fashion later this year.

The news follows BUPA's £1.4bn sale of 25 hospitals and a treatment centre to private house Cinven last year. BUPA was advised by a Slaughter and May team led by corporate partner Simon Robinson.

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