Hollard Moçambique Companhia de Seguros (acquirer) will acquire the total share capital (100% of shares) of Global Alliance Seguros (acquired), according to a statement from the Portuguese Competition Regulatory Authority (ARC).

Both entities operate in the insurance business, with the acquirer in the general field and the acquired in the life and non-life fields.

After analyzing the insurance sector in Mozambique, ARC found that the acquired company had the largest market share in life and non-life insurance, with 19.1%, followed by Fidelidade, with 14.80%, Emose with 14.5%, and Global Alliance with 12.6%. As a result, the ARC took the view that this horizontal transaction could lead, in the long term, to the acquirer being in a dominant position in the market among the main insurance operators.

According to the document released on NewsThe acquisition is due to the dynamism of the domestic market in this economic segment, which has recently seen the entry of four new players with a high level of competition.

It is also linked to the prospect that it will not in itself be an obstacle to competition, "either with current operators or with potential new operators entering the market".

Hollard Moçambique believes that this operation will leverage its growth in the market, without creating obstacles to effective competition in Mozambique or in a substantial part of its territory.

Notwithstanding the technical analysis - which raises concerns capable of disrupting the insurance market in the country - the ARC believes that this transaction will not generate harmful effects on actual or potential competition in the relevant markets identified, "nor does it create or strengthen a dominant position that allows for overall dominant or coordinated unilateral effects".

ARC "resolves unanimously to adopt the decision not to oppose this concentration...since it is not likely to create significant impediments to effective competition in the national market for the supply of life and non-life insurance, in related markets or in a substantial part thereof".