The companies announced the deal in September 2023.
The Administrative Council for Economic Defense of Brazil (Cade) will analyze Nestlé's purchase of the Grupo CRM, which owns the Kopenhagen and Brasil Cacau brands.
Nestlé has a long-standing presence in the Brazilian chocolate sector, with an emphasis on the manufacture and sale of industrial chocolates in wholesale and self-service retail channels. The Grupo CRM, mainly through its Kopenhagen and Brasil Cacau brands, offers an extensive range of premium/artisanal chocolates produced on a large scale and sold mainly through franchised stores throughout the country.
In the notification sent to CADE, the companies stated that the deal has the potential to expand the range of products and services on offer to consumers, and should be seen as pro-competitive. For Nestlé, the deal will allow it to adequately exploit the premium chocolate segment in Brazil, as well as incorporating into its business a chocolate franchise model operated by the Grupo CRM, through more than 1,000 stores across the country.
From the Grupo CRM's point of view, the operation opens up new prospects for growth and continuity in the market, with a focus on innovation, digitalization and exploring new categories and opportunities.
Under Brazilian law, the analysis of the transaction must be completed within 240 days in the normal procedure and within 30 days in the case of the simplified procedure.
In June of 2023, the country's antitrust authority CADE approved the acquisition of local chocolate maker Garoto by Nestlé Brasil with a number of conditions. The company said it intends to invest 2.7bn reais ($550.8m) into its chocolate and biscuit operations in Brazil up to 2026.
Overall, the company employs more than 30,000 people in Brazil and has 20 industrial units and nine distribution centres.