The Brazilian Antitrust Agency (“CADE”) approved the creation of Brazil’s second largest company in the asphalt area, a joint venture amongst the companies Greca, Betunel, and Centro Oeste which shall have a market-share of approximately 32% on the distribution and manufacture of asphalt in the country. This percentage is practically the same as Petrobras Distribuidora’s which — before the approval of the operation by the CADE — was the sector’s leader.
None of the three companies — alone — has a revenue of more than R$ 750 million which is the criterion applied by CADE to request the notice relating to mergers, associations and acquisitions for judgment. However, as the internal links amongst the companies could lead to the application of fines in the future by the CADE in case of lack of notice, the companies anticipated and submitted the joint venture operation before any request thereon by the CADE. As the market concentration was relevant, Chenut Oliveira Santiago – Sociedade de Advogados recommended that notice.
Luiz Gustavo R. Oliveira Rocholi, Fernando Santiago, Felipe Alves Pacheco and Filipe Ribeiro Duarte were in charge of the submission of the operation to the CADE.
Further information on this matter is available at http://www.valor.com.br/empresas/3770464/fusao-cria-segunda-maior-distribuidora-de-asfalto#ixzz3INnhlwI1