Cade agrees to buy SulAmérica by Rede D’Or without strings attached – 12/14/2022 – Marketplace

Sadiq Kidd (Administrative Council for Economic Defense) by majority on Wednesday (14) Buy a plan operator South American Health By the Rede D’Or Hospital Group, without restriction.

The Rede D’Or announced the acquisition of SulAmérica at the end of FebruaryIn an all-stock deal, the health plan company was valued at about R$13 billion at the time. The deal also marks Rede D’Or’s largest acquisition since the company’s debut B 3in December 2020, with an IPO of R$11.5 billion.

Kidd’s watchdog had already recommended in November that the deal be approved without strings attached. Susep (Private Insurance Supervisory Authority) also approved the acquisition in August. The work still needs the go-ahead from the ANS (National Agency for Complementary Health).

Six of Kidd’s directors, including the case’s rapporteur, Louise Hoffman, and chief Alexandre Macedo, voted for approval without strings attached. Board member Lenisa Prado voted in agreement, as long as interest management company Qualicorp was excluded from the resulting group.

Rede D’Or shares closed the day 4.91% higher, and SulAmérica shares were up 5.06%.

Prior to the verdict, traditional hospital groups such as Einstein, Sirio Libanis and Mater Dei had expressed their opposition to the deal, questioning Kidd’s need to judge the operation at this time, with over a hundred days to go before the end. From the statutory period ending in February.

The representative of the Syrio Lebanon Organization pointed to the “extraordinary speed” of Caddy and errors in the methodology that guided the recommendations of the Public Monitoring Authority.

However, Hoffman stated that “there is no economic justification for Solaramerica to exclude competitors” from Rede D’Or because the operator’s revenue is insufficient to sustain the group on its own and so the hospital network needs to meet other plans.

Directors Victor Fernandez and Gustavo de Lima cited the risks of sharing sensitive information from Rede D’Or competitors that SulAmérica might eventually acquire within its regular scope of business, such as that relating to doctors. But they considered that it was up to the ANS to regulate the sector.

The endorsement comes nearly a year after the municipality approved the purchase of Notre Dame Intermédica by Hapvida, which built the largest vertical health company in the country.