CADE Authorises the Association of Companies in the Agricultural Sector

CADE Authorises the Association of Companies in the Agricultural Sector
Photo: https://brazilcham.com/agriculture-giants-team-up-on-blockchain-platform-to-track-grains-in-brazil/ 24.02.2022 175

In the judgment session on the 9th of February, the Administrative Council for Economic Defense authorized the association, through an investment contract, between Louis Dreyfus Company Brasil (LDC), Amaggi Exportacao e Importacao, Sartco, Cargill Agricola and Dalablog Interests in Carguero Innovacao Logistica e Servicos and Green Net Administradora de Cartao. The Court gave definitive approval to the operation without restrictions. 

The companies LDC, Amaggi, Cargill and Sartco operate in the market of origination of various grains and agricultural products and commercialisation of commodities. Carguero is a joint venture currently owned by LDC and Amaggi, each with a 50% stake, which acts as an intermediary for road freight via a digital platform. On the other hand, Green Net is a company almost entirely owned by Dalablog and offers electronic freight and toll payment services.

Through the agreement, the new investors will be, together with the original ones, shareholders of Carguero, which, in turn, will hold 100% of the shares of Green Net. According to the companies, the deal is an opportunity to give greater robustness to Carguero's operations, allowing greater investments in technology and in the development of tools. It also represents, among other issues, the possibility of expanding the offer of Green Net services to all sectors that make use of road freight transport services at a national level.

In December 2021, the General Superintendence of Cade (SG/Cade) approved the operation without restrictions and, days later, the National Confederation of Autonomous Transporters (CNTA), a third party interested in the merger, filed an appeal against the decision. The case, then, was taken to the Court of the Council under the rapporteurship of counsellor Sérgio Ravagnani.

The rapporteur concluded that the operation does not generate anti-competitive effects in his vote. 

"Analysing the contractual provisions, it is concluded that the commitments and mechanisms presented by the applicants are sufficient to remove the competitive risks related to the exercise of coordinated power and exchange of sensitive information by competitors", 

explained Ravagnani.

The understanding was followed by CADE's Administrative Court, which dismissed the appeal and upheld SG/CADE's decision to approve the transaction's unrestricted approval.

Source: Gov.br

agricultural markets  Brazil 

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