Transportation of values
Cade approves purchase as long as Brink’s does not make new acquisitions for 3 years
The Administrative Council for Economic Defense conditioned the purchase of Tecnoguarda by Brink’s since a Merger Control Agreement is closed. In it, the second is prohibited from making new acquisitions of companies that offer cash transportation services in Brazil for a period of three years.
In October, Cade’s General Superintendence was against the purchase. The agency considered the growth movement of large companies in the value transport sector as worrying through the purchase of companies with regional operations, and not organically.
Wednesday’s trial (2/19) was tied. The merger was only approved with the casting vote of the President of the Court, Alexandre Barreto de Souza, who accompanied the rapporteur, counselor Mauricio Oscar Bandeira Maia, who had said that the merger raises competition concerns, especially in the state of Mato Grosso.
According to the rapporteur, Brink’s has made “proportional and sufficient” commitments to avoid impacts on the cash transportation market. He had already negotiated the conclusion of the agreement with the parties and was also followed by the advisor Luis Henrique Bertolino Braido.
The directors Paula Farani de Azevedo Silveira, Lenisa Rodrigues Prado and Sergio Costa Ravagnani voted against the acquisition.
Lawyer José Del Chiaro, a representative of Tecban, one of those interested in the case, claims that there is some resistance from Cade in changing the jurisprudence that had been consolidated
08700.001692 / 2019-46
Magazine Legal Adviser, February 19, 2020, 4:18 pm