A. M. The Superintendencia de Competencia (SC) has authorized the purchase of La Hipotecaria Holding, Inc. by Inversiones Cuscatlán Centroamérica, S.A. After an exhaustive analysis, the SC concluded that the transaction will not negatively affect competition in the home loan market, a crucial decision for the financial sector and consumers in El Salvador. The purchase includes La Hipotecaria Holding, Inc. and all its subsidiaries, including La Hipotecaria, S.A. de C.V.
The regulatory body examined the impact of the economic concentration, considering that the Inversiones Cuscatlán Centroamérica corporate group includes Banco Cuscatlán, SISA, and SISA Vida. The analysis focused on the home loan market and the insurance associated with these loans. The SC assessed whether the merger of these companies could limit competition or affect consumers, pursuant to Article 34 of the Competition Law.
To conduct the study, the SC requested information from eight economic agents participating in the market and from the Superintendencia del Sistema Financiero. This data collection allowed for a detailed assessment of the transaction’s potential effects on competition, economic efficiency, and consumer welfare. The final resolution emphasizes that the authorization was issued after confirming the existence of strong competition in the housing loan market.
According to the analysis, the acquisition does not pose a risk to healthy competition, as no reduction in options available to consumers or an increase in prices is expected. Controlling these types of mergers is essential to prevent anti-competitive effects and ensure that the market operates in a balanced and transparent manner, incentivizing investment and economic growth, as sought in the country.
Housing loans have been a key driver for the construction sector, which has experienced 18% growth in the last year, boosting employment and access to financing. Therefore, the Supreme Court emphasizes the importance of a technical and legal analysis of these transactions, ensuring that the market’s dynamism benefits the national economy and the Salvadoran people. The Supreme Court reaffirms its commitment to the market to protect consumer well-being.
