The Brazilian healthcare landscape has been changing rapidly as of late, with many of the sector’s main players announcing multiple mergers and acquisitions to strengthen their position in the market. On January 8, however, the announcement of the potential consolidation of health-maintenance organizations Hapvida and Notre Dame is set to blow the rest out of the water. Combined, the resulting company would be the world’s largest vertically integrated HMO.
The news caused a market frenzy, with shares of Hapvida and Notre Dame soaring 23 and 30 percent, respectively. Should the move go ahead, the resulting company would be valued at no less than BRL 120 billion (USD 21.8 billion) with an 18-percent market share and 12.4 million customers, between health and dental plans. However, this potential market concentration could raise eyebrows from antitrust regulators.
Analysts from investment bank BTG Pactual highlight how well the two...
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