CADE analyzes Nestlé offer to end the dispute by buying the Kid

The Administrative Council for economic Defense (Cade) announced on Friday (20) that will reopen negotiations with Nestle to treat the company''s merger with the Boy.
In 2004, the Council vetoed the purchase of Kid by Nestle, announced two years earlier, on the grounds that harmed competition in the domestic market of chocolates. Since then, Nestlé comes with the Court against the decision.
Cade reported that Nestlé Brazil received a proposal for a solution "to the impasse, in which" the Company undertakes to assume a set of structural and behavioral obligations, including social concerns. " However, the terms of the proposal of Nestlé are kept under wraps.
With the resumption of negotiations, Cade and Nestlé asked to suspend the lawsuit that argues the case processing in the Federal Regional Court of the 1st region, "until a final decision of the Council."
"Given the history of more than 14 years of this case, the stage of the judicial process and the existence of a new legal framework of antitrust law in Brazil, Where, after an initial assessment based on technical advice, it was considered appropriate to examine the proposal," said the Council, in a statement.
Changes in the market
To propose the resumption of the negotiations with Cade, and try a solution for the dispute, court not Nestlé claims that the changes in the Brazilian market of chocolates since 2004, the year in which the Council decided to veto the merger, were too deep. So, says the company, the final decision on the case would hardly "effectiveness or utility necessary to meet the interest."
Cade, in turn, followed the request of the company and reopened negotiations based on an article from its internal regulation which provides that the Council may review its veto to a merger, on request, provided it is presented "fact or new document" able to change the decision.
The first paragraph of the article provides that, in these cases, only facts or documents will be considered "pre-existing, of which the parties were only having knowledge after the date of the trial, or that before were restricted from use, proven."