CADE approves business billionaire between Novartis and Glaxo, but imposes restriction

Sao Paulo-the Administrative Council for economic Defense (Cade) approved with restrictions on billion-dollar partnership between Drugmakers Novartis, Switzerland source, and the British GlaxoSmithKline (GSK).
In Brazil, transaction worldwide, you might get into trouble mainly in the competitive market of nicotine replacement therapy, according to evaluation of the Cade, Márcio de Oliveira junior.
Therefore, antitrust body imposed Agreement on Merger Control (ACC) as a condition for approving the terms of the transaction. The term establishes that GSK dispose of assets related to smoke-free market.
Oliveira noted that disinvestment does not involve plants or factories, but only stocks, rights, licenses, authorizations and contracts of the market in question. The British would be responsible for business continuity in Brazil, so that competition is maintained.
Another concern of Cade is that the partnership between Drugmakers does not result in the exchange of sensitive information between the competitors. To address this risk, the companies pledged to maintain several physical barriers and electronic, training and monitoring mechanisms. In addition, outside counsel will monitor meetings between officials of the two companies.
The Cade decision for approving of the business upon the signing of the ACC was unanimous. "I think the agreement will resolve the concerns arising from this operation," said the Chairman of the organ, Vinicius de Carvalho.
After obtaining the approval, GSK announced yesterday that it still expects to complete the asset exchange with Novartis next week.
Marine hoses
Cade also judged yesterday an international cartel among suppliers of marine hoses for the transportation of oil. In Brazil, the cartel affected mainly the Petrobras. The schema also occurred in other 31 countries.
In Cade, 11 companies were accused of promoting international cartel for more than 20 years, roughly between 1985 and 2007. "There was price fixing, market Division and punishment for companies that do not follow agreement. This is a classic cartel, "said Oliveira, Rapporteur of the case.
He also stressed that the audit PricewaterhouseCoopers (PwC) came to be hired by companies to organise the cartel from 1990. Oliveira also highlighted that the high degree of institutionalization of the cartel, which had including standards of conduct, and punishments for forecast who disregards the cartel.
The case began to be tried in Brazil in 2007, after the Yokohama denounced the cartel. The leniency agreement, the company got immunity to feathers. The company made the same deal in other countries.
After Yokohama, other companies have confessed involvement in the cartel and signed terms of commitment to Cessation of practice (TCC), also paying cash contributions. They are: Dunlop ($ 16 million), Manulli ($ 2.1 million), Trelleborg ($ 4.4 million), Parker ITR ($ 5.1 million) and Bridgestone ($ 1.6 million).
The investigation against Goodyear, involved in the process, ended up being filed for lack of evidence. The suppliers Sumitomo and Hewitt Robins had no charges filed on behalf of prescription.
Companies Flexomarine S.A. Flexomarine Participações Ltda. and Pagé Holdings were fined $ 11.2 million, $ 1.1 million and $ 1 million, respectively.
Hospitals
Another cartel tried yesterday involved the provision of medical and hospital services market in the Federal District. Were convicted and fined: the hospitals Santa Lucia ($ 11 million) and Anchieta ($ 7 million), and the National Union of self-management in Health Institutions, the United Nations ($ 638 million).
Hospitals Anchieta and Saint Lucia have negotiated with health plan operators charging higher prices jointly and in identical levels. The United Nations, in turn, brought the health plans and impose their prices economic block, further enhancing his bargaining power. The ducts occur between July 2000 and mid-2001.
Cooking gas
The antitrust body also decided to maintain the fine of r $ 10.5 million against cartel of cooking gas. The penalty was applied in 2014 by the cartel practice in the metropolitan region of Porto Alegre (RS).
Cade kept fines of R $ 3.6 million to Liquigas ' Distributor, who was leading the cartel, $ 3.9 million to Supergasbrás energy and r $ 2.9 million to National butane gas distribution company. Embargoes presented by Liquigas-Doimo were rejected by Cade.