CADE approves purchase of Grupo Abril by manager Fabio Carvalho

BRASILIA-the Administrative Council for economic Defense (Cade) approved on Tuesday, 8, the purchase of Grupo Abril by Calvary, Investment company controlled by businessman Fabio Carvalho. In judicial recovery since last year, the group, which publishes magazines like Look, and Claudia, was bought in December by the investor, specializing in companies in financial crisis. The approval was in Rite contents, i.e. the technical area did not need to submit the deal to the Court of Cade and were not imposed restrictions. "The General concludes that this operation does not have the effect of causing damage to competition in the markets of the parties in Brazil", says the order of the organ. Cade has identified that the operation could result in market concentration of parcel distribution services, since April is owner of Total Company Express, while Carvalho holds stake in the company, which operates CEV with online sales. The Court, however, concluded that this market is sprayed and the participation of the two companies combined is less than 20% and thus there would be no significant impact on competition. Cade's approval is one of the steps necessary to take Oak Grupo Abril. Oak bought 100% of the company for the symbolic value of R $100,000, since you took over a debt of RS $1.6 billion. The Executive is a partner of the Leader retailers and Home Video and will take the & Presidency of the Publisher. April asked for judicial recovery and began a restructuring by the American captained Alvarez & Marsal, who took charge of the company. At the end of last year, Carvalho said, in an interview with the associated press, which aims to inject R $70 million in the company to stabilize the business in the short term. The consulting firm Alvarez & Marshal, however, concluded that the company's debt is priceless and structured a plan of reorganization which provides 92% discount on debts, with 18 years for payment. Labor debts are outside this level of discount, as they have legal priority. Some R $1.2 billion of total debt is in the hands of the big banks. Carvalho already assumed business in difficulty who belonged to BTG, as the Leader and Bravante, maritime logistics. In recent years, April has ceased to publish magazines and reduced costs with the output of your traditional headquarters in São Paulo (SP) and the resignation of 800 employees in August. In addition, the Grupo Abril Publisher still has TV and broadcasting services and distribution and logistics companies.