The National Economic Prosecutor’s Office (Fiscalía Nacional Económica or FNE) has announced the conditional approval of the global acquisition of Mediterránea de Catering S.L. by Sodexo S.A. The approval is strictly contingent upon the complete divestiture of Mediterránea’s business operations in Chile, a measure designed to prevent significant anti-competitive risks in the healthcare catering sector.
The FNE’s Phase 1 investigation identified that a merger without conditions would have granted the combined entity a dominant market share in the institutional food services segment for public and private hospitals and clinics. The regulator cited “unilateral and coordinated risks to free competition” arising from the high degree of competitive proximity between Sodexo and Mediterránea, combined with substantial barriers to entry for new competitors in the highly specialized medical catering market.
Structural Mitigation to Preserve Market Competition
To resolve these concerns, the parties submitted a structural mitigation proposal that was deemed effective and proportional by the FNE. This commitment involves the total sale of Mediterránea’s Chilean subsidiary to an independent buyer, who must be vetted and approved by the Prosecutor’s Office. By requiring a full divestiture, the FNE ensures that the current number of competitors remains unchanged and that the competitive pressure previously exerted by Mediterránea is maintained.
“Because the mitigation measures offered fully and clearly addressed the potential risks through divestiture, it was not necessary to extend the investigation into a Phase 2,” the FNE stated in its official resolution. This fast-track resolution allows the global transaction to proceed while safeguarding the domestic Chilean market from potential price increases or quality reductions in sensitive healthcare environments.
Profile of the Participating Entities
The transaction involves two major players in the global facility management and catering industry.
Sodexo S.A.: A French multinational corporation and a world leader in quality-of-life services, providing institutional food services and facility management across various sectors.
Mediterránea de Catering S.L.: A Spanish company specializing in institutional catering, which operates in Chile through its local agency, Mediterránea de Catering S.L. Unipersonal Agencia en Chile.
The FNE will closely monitor the sale of Mediterránea’s Chilean assets to ensure the buyer possesses the financial and operational capability to compete effectively. This decision follows a broader trend of intense regulatory scrutiny in Chile’s institutional service markets, where the FNE remains vigilant against consolidation that could harm public and private institutions.