CADE Approves Investment by Grupo Safra in a Joint Venture in the Food Delivery Sector

CADE Approves Investment by Grupo Safra in a Joint Venture in the Food Delivery Sector
Photo: https://www.fundssociety.com/es/estilo/tras-la-muerte-de-joseph-safra-su-imperio-debe-afrontar-el-relevo-generacional 29.04.2022 82

On 25th of April The Administrative Council for Economic Defense published in the Official Gazette (DOU) the approval, without restrictions, of the investment by Grupo J Safra in Quiq, a technological platform for managing food delivery. With the operation, Grupo J Safra will have a 5.56% stake in the joint venture formed by Domino’s, Giraffas, Outback, Rei do Mate, among other companies.

Grupo J Safra operates in the areas of commercial banking, credit, financing and investment for account holders and non-account holders, in addition to the management of securities portfolios and investment funds. Quiq is a joint venture established for the development, implementation, commercial exploitation and expansion of a technological platform for managing food delivery, marketplace and logistics, focusing on the aggregation and optimization of different activities carried out by its shareholders in the context of food orders online.

In its opinion, the General Superintendence of CADE highlighted that Grupo J Safra has a low share in the national market for the accreditation of transactions. On the other hand, although Quiq's shareholders are important players in the foodservice market, their joint participation in Safrapay's demand for electronic transactions (the payment institution market of Grupo J Safra) is less than 30%, not being enough to enable market closure, even when considering only transactions from restaurants. Thus, SG concluded that the deal does not harm the competitive environment and decided to approve it without restrictions.

If the CADE Tribunal does not invoke the mergers for analysis or there is no appeal by interested third parties, within 15 days, the decisions of the General Superintendence will have a terminative character and the operations will be definitively approved by the antitrust agency.

Source: CADE

food markets  Brazil 

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