Brazil Antitrust Watchdog Recommends Approval of Carrefour Acquisition of BIG Brasil

Brazil Antitrust Watchdog Recommends Approval of Carrefour Acquisition of BIG Brasil
Photo: https://labsnews.com/en/news/business/carrefour-acquires-grupo-big/ 31.01.2022 240

In an order signed on Monday, 24 January 2022, Brazil’s Administrative Council for Economic Defence (CADE) recommended the approval of the acquisition of Grupo BIG by the Brazilian arm of Carrefour. CADE also proposed the adoption of remedies negotiated with the companies to mitigate competition risks arising from the operation.

The transaction involves the acquisition of 386 self-service retail units, 15 gas stations and 11 distribution centres from Grupo BIG Brasil, which operating as Walmart Brasil earlier.

According to the SG/CADE, the companies involved in the deal are currently competitors in three markets: self-service retailing (involving supermarkets, hypermarkets, wholesalers and shopping clubs); wholesale distribution of primarily food products and other goods; and retail fuel resale.

The so-called Agreement on Concentration Control (ACC) foresees the divestiture of some self-service retail units (less than 10% of stores), in addition to commitments related to non-competition and the maintenance of the economic viability of the divested units until the effective transfer of the businesses.

CADE has up to 240 days, extendable for 90 more days, to conclude its review of mergers. The legal deadline for concluding the analysis of the transaction involving Grupo BIG Brasil began on 12 July 2021.

Sources: Reuters, Gov.br, ESM Magazine

food markets  Brazil 

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