The Portuguese Competition Authority (AdC) has announced the initiation of a thorough investigation into the merger of private hospital care providers due to concerns that it could significantly impede effective competition in the market.
Considering the national significance of CUF and the regional importance of Grupo HPA, the regulator expressed that there is a possibility the merger could lead to a substantial increase in negotiating power with insurance providers and complementary subsystems.
This increased power could result in less favorable commercial terms for these entities, potentially causing negative impacts along the value chain and affecting final beneficiaries’ costs, the AdC warned, noting “competition law issues” could arise from a potential reduction in competition.
The acquisition of HPA by CUF was submitted to the Competition Authority in April, with plans for CUF SGPS, primarily owned by José de Mello Capital, to acquire HPA—a private hospital group with facilities in the Algarve, Alentejo, and Madeira regions.
The AdC indicated that this merger involves the leading national operator acquiring a key regional player whose operations are currently in areas where CUF has no presence.
The document highlights recent years’ growth in the private hospital care sector, driven by increased demand and expanded insurance and complementary health system coverage.
The authority also pointed to ongoing sector consolidation and worsening commercial terms, with significant barriers to new market entries.
The AdC emphasized that this is not a final decision. The in-depth investigation is necessary for further assessments, after which the authority may choose not to oppose or prohibit the merger. The buyer may also receive recommendations to proceed with the transaction.
