CADE rebukes acquisition of Condor by Tiger

The Administrative Council for economic Defense (Cade) failed last purchase of Rio Condor by Tiger, known for the manufacture of pipes and fittings. The municipality tried to reach an agreement, but the companies did not accept the conditions of the Cade.
After the acquisition, the Tiger would come to a dominant position in the markets of brushes, rollers for painting, carving, brushes and brushes and accessories for painting. In several of these segments, the Cade found that the Atlas company would be able to rival Tiger, preventing abuses.
But specifically in the market of brushes, the Defense organ competition held that the case was more serious. Together, Tiger and control them 65% of Condor niche.
"Unlike other markets, from brushes there would be no rival capable of contesting the high market power [Tiger's]," said the Adviser and Rapporteur of the case, Márcio de Oliveira junior.
After the operation, he says that the second largest company in this business would have less than 15% market share-insufficient postage to discourage abusive pricing practices by the Tiger.
The applicants of the operation were willing to sell two distribution centers and license the brand Condor, but Cade understood that the measures would not be sufficient to offset the negative aspects of the operation.
The third condition suggested-without which the operation could not be approved-would involve the sale of assets in the brushes. But as the productive chains of branches of carving and brushes are connected, this solution ended up being rejected by the company.
The Advisor reported that companies hired an engineering consultant to study the separation of the production chains of carving and brushes. But understand that the dissociation was not possible.
"There is a huge potential anticompetitive in the operation. It is undeniable that cannot be approved as it was presented, "said the Advisor.
The President of Cade, Vinicius Marques de Carvalho commented that the use of the words reveals the caution of the municipality to reject operations. "When we say ' don't pass ', in fact we are failing," he says.
The difficulty concerns the fact that free enterprise is a constitutional principle. "It's a big weight to the competition authority." He also pointed out that if companies are willing to negotiate, may submit the request again to Cade.
In the last session, Cade ordered the Union of dealers and Distributors of vehicles do Distrito Federal (Sincodiv/DF) and its former leadership by inducing uniform business conduct. The Sincodiv was fined $ 532 thousand. Former President and Vice President were fined for $ 319 thousand and R $ 266 thousand.
For the municipality, the Union induced collective readjustment of the concessionaires, limiting possible individual negotiations will portions of the market agents.
Payroll
Cade has denied requests from banks Santander, Itaú Unibanco and Banco de Brasilia (BRB) on process that investigates the exclusivity contracts in providing payroll loans. The decision in dispatches published in the Diário Oficial da União.
The Council opened in June inquiry to investigate the conduct of six banks, among which are also the Caixa Econômica Federal, Banco Bradesco and Banco do Rio Grande do Sul.
According to Cade, only the requests had to be rejected for lack of legal support. The question of merit will be judged in a timely manner.