CADE can impugn business between Continental and Veyance

The General Superintendence of the Administrative Council for economic Defense (Cade) suggested "challenge" of Act of merger between Continental AG and Veyance Technologies, second order published in the Diário Oficial da União.
The case will be forwarded to the Court of the organ, which will issue final decision accepting or not the recommendation of the Superintendent.
The operation was submitted to the Brazilian competition Defense System (SBDC) on 20 May this year and consists of the acquisition of control of Veyance by Continental.
According to the agreement, Continental, through its wholly owned subsidiary South Acquisition, plans to acquire the LTR Holdings, which owns Veyance's control.
So, after the operation, the South will incorporate the EPD, controller of Veyance, leaving the EPD as indirect subsidiary of Continental.
Continental is a German company that engaged in manufacturing parts for automobiles, trucks and industrial parts, operating in 46 countries. Produces, among other items, brake systems, conveyor belts and tires.
The Veyance manufactures rubber products in 11 countries, including hoses, rubber tracks for agricultural equipment, and air springs.
In August, Cade announced he would deepen the analysis of the operation, before issuing an opinion.
The Agency instituted, so new endeavours to ascertain the quantities sold and imported series and require, at the discretion of the parties, the introduction of efficiencies, including the expected reduction in the marginal cost and the measurement of consumer gains in operation.
On occasion, the Cade found that the statement held up to that point was pointing that the operation would result in high concentration in the markets for air springs for the segment of original parts, heavy steel cord conveyor belts, conveyor belts, fabric heavy power transmission belts for the automotive segment of original parts and automotive power transmission belts for spares.
So argued the Superintendency, the need for further analysis.