CADE to Review Merger of Arezzo and Grupo Soma

CADE to Review Merger of Arezzo and Grupo Soma
Photo: serma.net 22.03.2024 200

The transaction includes some Brazilian brands, such as Farm, Animale, Schutz, and Reserva.

he Administrative Council for Economic Defense (CADE) is to review a merger between Arezzo&Co and Grupo Soma, leading to the combination of their activities and shares. On 18 March, CADE published the request from Arezzo&Co and Grupo Soma to review the transaction.

Arezzo&Co is a company that manufactures and supplies footwear and bags, but it also operates in fashion and accessories markets in Brazil, the United States, and Italy. Currently, the company holds the following brands: Arezzo, Schutz, Anacapri, Alexandre Birman, Alme, Reserva, Reserva Mini, Reserva Go, Oficina Reserva, Reserva INK, Reserva Simples, Baw Clothing, Carol Bassi, Vicenza, Paris Texas, Reversa, Brizza, and Vans. Moreover, Arezzo&Co operates in the marketplace of ZZ Mall and TROC virtual platforms.

On the other hand, Grupo Soma is a publicly held company operating mainly in the fashion market, but also in the footwear and accessories markets. The group runs a decor business as well. Grupo Soma operates across Brazil and abroad, holding brands such as Animale, Farm, Fábula, Foxton, Cris Barros, Maria Filó, NV, Hering, and DZARM. Furthermore, they run a marketplace from the Off Premium platform, selling in-house and third-party products.

According to the companies, the transaction gains synergy to manage sales channels, optimising industrial operations and the development of new business lines, helping them to be more resilient in extremely competitive markets.

Time limit for review

According to the legislation, the merger review must take no longer than 240 days. The legal time limit is extendable for up to 90 days upon a reasoned decision by the Tribunal of CADE or up to 60 days upon request by the parties. 

To review mergers, CADE categorises them as summary cases (less complex concerning the competition issues they pose) and ordinary cases (which demand in-depth analysis). As per CADE Resolution no. 33/2022, the assessment of transactions subject to a summary review must be concluded within 30 days.

Source: Gov.br

Brazil  

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