CADE clears merger between Rede D’Or and Sul América S.A

In the hearing of 14 December 2022, the Tribunal of the Administrative Council for Economic Defense (CADE) unconditionally cleared, by its majority, the merger between Rede D’Or and Sul América S.A (SASA), which unified their shareholder basis.

Rede D’Or is the holding company of Rede D’Or Group that acts in the healthcare sector, operating in hospitals, clinics, diagnostic medicine laboratories, and blood banks in eleven Brazilian states and the Federal District.

SASA, in turn, has had activities in the insurance sector in Brazil since 1895. The firm offers a wide range of products and services to individuals and companies all over the country, focusing on personal protection—especially in the healthcare, dental, and financial sectors.

The companies base the transaction on a strategy to expand and align their respective healthcare segments, including dental businesses, life insurance, pension, and investments, in favour of clients and business partners.

In November, the Office of the Superintendent General (investigative body of CADE) recommended the unconditional clearance of the deal, as it understood resulting horizontal and vertical integrations did not raise competition concerns. Additionally, the body dismissed any issues related to the possible exchange of sensitive information between the merging parties.

Commissioner Luiz Augusto Hoffman, the rapporteur of the case, advised in his vote factors that mitigate the concerns raised by third parties’ appeal against the decision of the investigative body. The rapporteur decided on the unconditional clearance of the merger, stressing the antitrust authority should remain watchful of anticompetitive evidence in the healthcare sector.

“I understand CADE’s role is to watch the sector and operate in case of evidence of discriminatory and harmful practices to the competition", claimed Mr Hoffman.

Access Case no. 08700.003959/2022-35.