Rede D’Or: Cade approves acquisition of SulAmérica with out restrictions; Shares up 5%
- December 16, 2022
- No Comment
This Wednesday (14th), the Administrative Council for Economic Defense (Cade) officially approved the acquisition of SulAmérica (SULA11) by Rede D’Or (RDOR3), without restrictions and definitively.
THE acquisition of SulAmérica (SULA11), valued at R$15 billion, was announced in February by Rede D’Or. In November, the Where recommended endorsement of the transaction without restrictions. The Private Insurance Superintendence (Susep) also approved the merger between companies In August.
“The company will keep its shareholders and the market informed about the relevant steps related to the consummation of the transaction, including with regard to final decisions eventually issued by other competent government authorities, as applicable, pursuant to the law and CVM regulations”, told Rede D’Or.
The advisors of the antitrust authority understood that the questions presented in the process by hospitals and health plans that the operation could harm competition were not valid.
Cade recommended, however, that the National Supplementary Health Agency (ANS) adopt a specific rule to mitigate the risk of exchange of sensitive information between hospitals, such as Rede D’Or, and health plans, such as SulAmérica, which belong to to the same group.
In his vote, the case’s rapporteur, Luiz Hoffmann, highlighted that the market share of Rede D’Or and SulAmérica, in the vast majority of municipalities where they operate, does not exceed 20%, a limit above which Cade considers that there may be overconcentration. “There are no elements that justify Cade’s intervention, under penalty of making possible beneficial effects to consumers unfeasible”, he said.
Hoffmann also pointed out that there are other cases of health insurance who have stakes in hospitals and vice versa. “In any case, I understand that it is up to Cade to monitor the sector, and this council should act if there are signs of discriminatory practice”, he added.
Board members highlighted concern that the operation of Rede D’Or and SulAmérica could lead to the exchange of competitively sensitive information, such as the hospital passing on prices charged by other health institutions to the health plan operator.
The understanding of the majority, however, was that this matter should be regulated by the ANS (National Supplementary Health Agency). “We are approving it, but saying that the company has to structure itself so as not to expose competitors’ secrets. This alert has to be very clear that we are not here issuing a letter of manumission in relation to compliance with sectoral norms”, said counselor Gustavo Augusto.
As Broadcast showed, competing hospitals expressed to Cade their fear that the purchase of Sulamérica by Rede D’Or harm the market. The Sírio Libanês, Albert Einstein, Osvaldo Cruz, Beneficência Portuguesa and Hospital do Coração hospitals took part in the process.
At the trial, the hospitals’ lawyers argued that Cade should adopt locks to prevent the operation from harming competition.
“There is harm to consumers. We see news of records of complaints against SulAmérica due to the cancellation of services”, said the Albert Einstein Hospital lawyer, Joana Cianfarini.
The representatives of SulAmérica and Rede D’Or defended the operation. “Rede D’Or is confident that the operation analyzed today has the capacity to bring broad benefits to the entire health sector and does not raise any competition concerns”, said the network’s lawyer, Bárbara Rosenberg.
(With information from Estadão Content)
Quotation Rede D’Or and SulAmérica
The shares of Rede D’Or rose 5.60% at 4:40 pm this Wednesday (14), quoted at R$ 25.66, while SulAmérica units operated at a 5% increase, quoted at R$ 19.
With information from Estadão Content