CADE orders notification of equity participation in Oncoclínicas

On 8 April, the Administrative Council for Economic Defense (CADE) determined the notification of the equity participation involving Oncoclínicas do Brasil Serviços Médicos, a medical group specialised in oncology treatments. The Tribunal of CADE found that the companies completed the transaction before the authority’s analysis. Known as gun jumping, the conduct occurs when mergers subject to mandatory notifications are completed before clearance.

The administrative procedure analysed the acquisition of equity participation in Oncoclínicas by Quíron Multi-Strategy Private Equity Fund and Tessália Multi-Strategy Private Equity Fund. During the transaction, the investment funds acquired 11.97% of the company’s shares through private placements. Combined with prior acquisitions, the group’s participation in Oncoclínicas’ shares reached 20.18%.

In this context, Commissioner Camila Alves, rapporteur of the case, understood that the transaction fits in the requirement for mandatory notification, according to CADE Resolution no. 33/2022, applicable when the acquisition of equity participation grants the investor 20% or more of the shares of a company that is not a competitor or vertically related.

The Tribunal unanimously followed the vote of the rapporteur and ordered the parties to notify the merger within 30 days. In case of non-compliance, the parties are subject to a daily fine of BRL 5 thousand.Moreover, the application of the fine related to the case is suspended until a final decision is issued.