Portugal’s Competition Authority (AdC) has approved private healthcare provider CUF’s acquisition of a 75% stake in the Hospital Particular do Algarve (HPA) private health group under the condition that CUF builds a new hospital in the Algarve as part of the deal.
Under the ruling, CUF must develop and construct a medium-sized hospital in the region, which is expected to be sold to a third healthcare provider. If, during this period, another operator launches a competing hospital project in the Algarve, that alternative will be assessed by both CUF and the Competition Authority.
Should neither scenario materialise, CUF will be required to sell of an “equivalent hospital” from its national network, according to information disclosed on Tuesday to the Portuguese Securities Market Commission (CMVM).
Beyond the construction requirement, the Competition Authority has also ordered CUF to sell off a business activity with annual revenues exceeding €15 million. CUF said this obligation “may be met through several options currently under analysis.”
The group has further committed to maintaining existing commercial conditions with insurers and public health subsystems, with capped annual price updates. Price increases for uninsured patients will also be limited, alongside enhanced transparency, reporting and monitoring obligations, which will remain in force until all divestment measures are fully implemented.
The deal, whose value has not been disclosed, has been under an in-depth investigation by the Competition Authority since last summer. Over six months, the regulator gathered information from rival hospitals, insurers, regulators and CUF itself to assess the impact of the acquisition on competition, pricing and negotiations with healthcare funders.
Following this review, the authority concluded that the proposed conditions “adequately address competition concerns”, leading to a decision not to oppose the transaction. The next step will be the signing of the purchase agreement.
In a statement, CUF CEO Rui Diniz said the partnership represents “a very significant step” for the group.
“It allows us to strengthen our ability to respond to the health needs of the population and continue to invest, in a sustainable way, in the quality of care we provide,” he said.
Founded in 1996, the HPA Saúde group operates five hospitals and 17 clinics across the Alentejo, Algarve and the Autonomous Region of Madeira. The group is chaired by João Bacalhau.
Source: ECO
