CADE to review Albert Einstein Hospital and Bradesco Group partnership to build a new hospital

The Administrative Council for Economic Defense (CADE) is to review a partnership agreement between Atlântica Hospitais, an indirect subsidiary of bank Bradesco, and Sociedade Beneficente Israelita Brasileira Albert Einstein. The parties’ agreement aims to build, develop and operate a general hospital in São Paulo. The notice that makes the transaction public was published in the Federal Official Gazette of Brazil on 7 July 2023.

Atlântica is a holding company for investments in healthcare facilities belonging to the Bradesco Group. Bradesco, for its part, is a Brazilian financial institution that offers financial services and products in Brazil and abroad.

In turn, Albert Einstein Hospital is a charitable, social, scientific non-profit organisation that operates in the markets of hospital-related services and medical diagnosis-related services.The organisation owns several hospital units, research and health care centres and other units of related areas.

Upon the merger notification to CADE, the parties stated that the merger represents an opportunity to further develop the activities of Atlântica towards holding shares in the hospital and healthcare segments. As for Einstein, the transaction strengthens its mission as a philanthropic organisation to produce and share knowledge in the health industry.

Review time limits

 According to the Brazilian legislation, the merger review must take no longer than 240 days. The legal time limit is extendable for up to 90 days upon a reasoned decision by the Tribunal of CADE or up to 60 days upon request by the parties.

To review mergers, CADE categorizes them as summary cases (less complex concerning the competition issues they pose) and ordinary cases (which demand in-depth analysis). As per CADE Resolution no. 33/2022, the assessment of transactions subject to a summary review must be concluded within 30 days.