merger control in brazil – cade – 2017 latin american and caribbean competition forum
TRANSCRIPT
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Merger Control in Brazil
Amanda Athayde
Chief of Staff of the General Superintendence and Head of the Leniency Unit [email protected]
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16 X 74 fast-track non fast-track
Number of days for a merger review
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Outline
1. CADE’s Structure and recent legislative modifications
2. Merger Control Statistics
3. Guidelines on Horizontal Mergers and Gun Jumping 4. Main cases in 2016: a quick overview
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Outline
1. CADE’s new structure and recent legislative modifications
2. Merger Control Statistics
3. Guidelines on Horizontal Mergers and Gun Jumping 4. Main cases in 2016: a quick overview
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1. CADE’s Structure and recent legislative modifications
Former Structure – Law 8884/94 New Structure: Law 12.529/11
Cade Administrative Tribunal
Seae
Mergers
SDE
Anticompetitive Conducts
Cade Tribunal
General Superintendence (SG) Department of Economic Studies
Seae
Advocacy
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1. CADE’s Structure and recent legislative modifications
1962 CADE was created
1994 Law No. 8884
No merger control
2012 Law No. 12529
Post-merger control Pre-merger control
Low degree of International cooperation
High degree of International cooperation
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1. CADE’s Structure and recent legislative modifications
Filing
Fast track Non-fast track
Clearance Clearance Remedies
General Superintendence
Challenge
Tribunal Decision Remedies
Decision Request for further review
Filing less formality: frequent contact with the parties to guarantee the quality and
accuracy of the presented information
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1. CADE’s Structure and recent legislative modifications
240 days 60 days
90 days 120 days - GS 120 days - Tribunal
Fast-track cases: 30 days Non fast-track cases: 240 + 60 or 90 days (maximum 330 days)
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Outline
1. CADE’s new structure and recent legislative modifications
2. Merger Control Statistics
3. Guidelines on Horizontal Mergers and Gun Jumping 4. Main cases in 2016: a quick overview
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• Merger notifications and decisions
2. Merger Control Statistics in Brazil
92% Cleared without restrictions (353 SG and 7 Tribunal) 2% Approved with restrictions (5 settlements and 1 unilateral imposition of conditions Tribunal) 5% (19) non notifiable 1% (5) filed No cases rejected by CADE (although 1 case withdrawn by the parties)
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• Time frame analysis (including both the SG and the Tribunal)
2. Merger Control Statistics in Brazil
Non fast-track cases (complexes): ordinary filing proceeding (74 days) Fast-track cases: simplified filing proceeding (16 days) Average (28 days)
No “stop-the-clock” possibility
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Outline
1. CADE’s new structure and recent legislative modifications
2. Merger Control Statistics
3. Guidelines on Horizontal Mergers and Gun Jumping 4. Main cases in 2016: a quick overview
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• Update of the 2001 Guidelines • Aligned with the new pre-merger review system • Steps of the analysis (not mandatory):
• Definition of the relevant market • Analysis of the horizontal concentration level • Assessment of the probability of use of market power
after the merger • Valuation of the existing purchasing power in the
market • Weighting of economic efficiencies inherent to the
merger • Complementary methods: simulations, contra
factual analysis and maverick eliminations
3. Guidelines on Horizontal Mergers and Gun Jumping
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• Penalties: nullity of the transaction and fines, which ranges from BRL 60,000 to 60 million
• Guidelines structure: • Gun Jumping “categories” and examples
• Exchange of information between companies involved in merger transactions
• Contractual clauses governing the relationship • Activities before and during the negotiation
• Procedures to mitigate the risks • Penalties possibly imposed
3. Guidelines on Horizontal Mergers and Gun Jumping
New Draft Guidelines on Merger Remedies: expected to 2017
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Outline
1. CADE’s Structure and recent legislative modifications
2. Merger Control Statistics
3. Guidelines on Horizontal Mergers and Gun Jumping 4. Main cases in 2016: quick overview
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4. Main Cases: quick overview
• Merger cases:
• Bradesco/HSBC (Aug 2016)
• Hypermarcas/Reckit Benckinser (Sept 2016)
• John Deere/Precision Planting (Feb 2017)
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4. Main Cases: quick overview
• Gun Jumping cases:
• 5 cases in 2016 (11 since the new Law 12.529/2011)
• International merger: Cisco Systems Inc./Technicolor S/A
• National merger: Shimano/Blue Cycle