Belgian Competition Authority Raises Questions on Aedifica–Cofinimmo deal, Analysts Note Shift in Tone
Analysts at Kepler Cheuvreux have highlighted a critically important progress regarding the proposed merger between Aedifica and Cofinimmo, noting that Belgium’s Competition Authority has raised questions about the deal. This intervention marks a notable shift in the regulatory stance compared to earlier announcements by Aedifica in May, according to Kepler’s report on friday.
The increased scrutiny from the Belgian regulator could present a surprise to the market, Kepler suggested. Following the initial announcement of the consolidation, opposition from trade unions has become more pronounced. Kepler also indicated that private operators of healthcare institutions may have exerted considerable pressure on the competition authority.
The core issue, as identified by Kepler, revolves around the potential requirement for asset divestitures if the combined entity’s market share is deemed too substantial by the competition authority.This situation introduces uncertainty regarding the deal’s timeline, a factor not helped by the current holiday period.
Despite these developments, Kepler Cheuvreux has maintained its “keeping” advice for Aedifica, setting a price target of 70.00 euros. On Friday, Aedifica’s shares closed 1.2 percent lower at 64.35 euros on the Brussels stock exchange, while Cofinimmo saw a 1.3 percent decrease, closing at 75.70 euros.
