The AdC (Autoridade da Concorrência) decided to open a phase II investigation on the merger involving the acquisition by Fidelidade of two real estate investment funds, previously managed by a managing entity of the CGD Group.

 

The closed-ended funds Saudeinveste and Imofid own real estate in several regions of Portugal.

 

In its assessment, the AdC considered a possible vertical integration, since these real estate assets are under a lease regime by private hospital services, competitors of Luz Saúde, a company owned by the Fidelidade group. The latter will manage those real estate assets, if the merger is likely to be approved.

 

The decision to proceed to an in-depth investigation is grounded in the fact that, based on the evidence gathered so far, there are indications that the acquisition of Saudeinveste and Imofidfunds by the Fidelidade group may give rise to significant impediments to effective competition in the affected markets, in terms of a possibility of an input foreclosure to competitors of Luz Saúde.

 

Upon the closing of the phase II, the AdC may:

 

• Adopt a non-opposition decision, if it considers that the merger, as notified, or following modifications by the Fidelidade Group (through remedies), is not likely to create significant impediments to effective competition in the relevant markets; or

 

• Adopt a prohibition decision, if it considers that the merger is likely to create significant impediments to effective competition in the relevant markets, thus generating damages to users of private hospital healthcare.

 

This is the second in-depth investigation decided by the AdC since the beginning of this year. The first was a decision to proceed to phase II on the merger involving the acquisition of the Hospital de São Gonçalo de Lagos (HSGL) by Grupo Particular do Algarve, also related with the private healthcare sector.

 

Lisbon, 5 July 2019