The acquiring economic group (IFA) together with Seguros del Pacífico (SDP) participate in overlapping economic activities, where they compete with each other, such as: surety bonds, life insurance and accident and health insurance.

In addition, the intervening economic groups participate in other non-overlapping financial activities: on the one hand, IFA participates in the granting of loans, stock brokerage and management of investment funds, while SDP participates in the provision of property and casualty insurance.

The Board evaluated the possible effects of the transaction in the relevant markets identified, concluding that there are no elements indicating that the acquisition of SDP would cause a significant limitation of competition, considering that it would not increase concentration levels or substantially alter the current structure of such markets.

There is also no evidence that the acquisition could affect the incentives of competitors to compete or that it could generate undue advantages in favor of those involved in the transaction. Therefore, as a result of the transaction, no risks to consumer welfare or to the efficiency of the markets are foreseen.

Under the mandate of the Competition Law, the SC must preventively analyze the requests for economic concentration submitted by any agent in the exercise of its economic freedom, provided that these comply with the criteria established in the regulations.

With the preventive control of economic concentrations, the SC continues to monitor and protect the proper functioning of markets, with the main objective of safeguarding economic efficiency and the welfare of salvadoran consumers.

Translated by: A.M