Brazil’s Administrative Council for Economic Defense (CADE) announced that its General Superintendence has forwarded the proposed merger between DaVita, a dialysis service provider and Fresenius Medical Care’s subsidiary Brasnefro, to CADE’s Court for further review. The move to contest this merger underscores competition concerns in the dialysis sector, particularly in services for chronic patients.
The Superintendence identified potential issues in markets where DaVita and Brasnefro both operate, with significant overlaps in dialysis services for patients with chronic kidney conditions who require regular clinic visits. This overlap was assessed within municipal limits due to the frequent travel requirements for these patients, revealing high market concentration and limited rivalry across nine of ten analyzed locations.
Conversely, in acute care dialysis, provided to hospitalized patients, CADE noted that competition is less likely to be compromised, given the presence of other providers and adequate market entry.
CADE’s Court will now evaluate the case, with a designated counselor assigned to lead the review and submit the final recommendation. The outcome will determine if the merger proceeds or if conditions are imposed to mitigate competitive risks.
