Competition clears JHSF purchase of Enjoy Punta del Este
The purchase of Enjoy Punta del Este Resort & Casino by the Brazilian group JHSF cleared its last regulatory hurdle in Uruguay. The Competition Promotion and Defence Commission of the Ministry of Economy and Finance authorised in first phase the economic concentration derived from the acquisition of Baluma, the company that owns and operates the complex, by JHSF Península, an approval that adds to the clearance the Central Bank of Uruguay had already given in July.
The resolution, dated 3 August, closed an analysis that had formally begun on 21 April and concluded that the operation does not significantly alter the structure of the markets at play nor put effective competition at risk. The procedure also includes the indirect acquisition of Baluma Cambio, dedicated to foreign currency exchange and trading, whose treatment remains in the hands of the Central Bank, so the Competition green light does not replace the controls corresponding to other bodies.
To assess the case, the body delimited two relevant markets, that of high-end hotel lodging and that of gambling and casino, both narrowed to Punta del Este, La Barra, José Ignacio and their area of influence. In hotels it considered the offer is atomised and that the operation does not relevantly move concentration levels. In casinos, the particularity is that JHSF did not operate gambling in Uruguay, so the purchase does not generate a horizontal overlap but merely a change in the agent controlling the company, in a restricted-access market, with strong regulatory barriers and a specific concessional regime for Baluma, conditions under which the body did not see additional competitive pressure capable of altering the board.
With the operation closed for 160 million dollars for one hundred per cent of Baluma, the focus now shifts to JHSF's plan, which foresees a major expansion of the asset. The project incorporates a new Fasano hotel, a shopping centre with around fifty mostly international stores and restaurants, and new residential units, in addition to the existing casino. The first stage, under the Fasano brand, is planned for the end of this year, and the second, with the full project, for the end of 2027.
That plan redefines the casino's role within the complex. Its chief executive, Augusto Martins, had explained that the hall remains a relevant component of long tradition, but that it stops being the sole magnet to become part of a broader proposal, of urban dynamic and greater variety of experiences, aimed at a high-purchasing-power public. The executive stressed that Uruguay offers stability, legal security and an environment favourable to investment, attributes that in his view give a solid base for developments of this scale.
Tags: JHSF, Enjoy Punta del Este Resort & Casino, Baluma, Commission for the Promotion and Defense of Competition