The Portuguese Competition Authority (AdC) has initiated an in-depth investigation into CUF – Sociedade Gestora de Participações, S.A.'s acquisition of sole control over Hospital Particular do Algarve, S.A. This decision follows preliminary findings suggesting that the transaction could significantly impede effective competition in the national healthcare market, potentially harming consumers.

CUF is a major player in the healthcare sector, operating 12 hospitals and 17 clinics across Portugal. The target, Hospital Particular do Algarve (HPA), is a prominent private hospital group with facilities in the Algarve, Alentejo, and Madeira regions. HPA provides a range of medical services, including diagnostic testing and dental care, integrated within its healthcare network.

The AdC's concerns stem from a notable increase in demand for private healthcare services, driven by expanded health insurance coverage. The sector has also seen consolidation, which has reportedly led to worse commercial conditions for consumers. The acquisition involves CUF, the largest private healthcare provider in Portugal, taking over a leading regional provider, raising concerns about increased bargaining power over health insurers and potential negative impacts on commercial terms for consumers.

As part of the investigation, the AdC will assess whether the acquisition could eliminate future competition and further strengthen the parties' market position. The authority's decision will determine whether to clear the transaction, possibly with conditions, or to prohibit it if significant competition concerns are confirmed.