CADE will decide on between Tiger and Condor Brushes

The Administrative Council for economic Defense (Cade) released note Friday, 05, which States that the Act of concentration for the purchase of all the shares of the capital stock of Condor Brushes Ltda by Tigre S/A-pipes and fittings will be reviewed now by the Court of the organ.
The General Superintendence of the Cade decided to challenge the operation and referred the decision to the Board, which will give the final decision on the case.
The Superintendent found that the Tiger and Condor are the two biggest market economic agents of brushes, and other competitors have significantly lower postage. With the proposed transaction, according to Cade, the Tiger would hold more than 70 percent of the market.
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"The General Superintendence concluded also that the transaction raises competition concerns in the markets for brushes, brushes, rollers, carving and painting accessories, despite the existence of a significant-sized rival. According to the opinion, the increasing power of Tiger's portfolio in these segments could be an obstacle to access for smaller companies to points of sale, "says the note.
Because of what he called "anti-competitive potential", the "General Superintendence understood that the approval of the operation as presented could result in increases in the prices of products and the Elimination of competitors of the markets involved".
It will be up to the Court Where now give the final decision on the approval, rejection or adoption of any restrictions or measures that keep the problems identified.
The Act of concentration has been notified in December 2014 and the parties submitted amendment of notification in January 7, 2015. The legal deadline for the final decision of the Cade is 240 days, extendable for another 90.
Condor Brushes is responsible for manufacturing and marketing tools for artistic painting and school and for painting real estate. Tigre S/A-pipes and fittings belongs to the Tiger, also formed by the companies Brushes Tiger-tools for painting, Full-PVC fittings, Claris-Windows and doors in PVC and Tiger ADS-corrugated pipe in HDPE.