CADE thinks today purchase of Statius by Kroton

BRASILIA-less than a week after taking office, can fit the new Chairman of the Administrative Council for economic Defense (Cade), Alexandre Barreto, the decision on the purchase of Statius by Kroton, which will be judged by this Wednesday, 28. According to sources accompanying the negotiations, one of the possible scenarios is a tie at the trial. With that, the President, who shall have the casting vote, would decide the issue.
How to avail the associated press/Broadcast yesterday, the Secretary shall produce a draftsman Cristiane Alkmin vote for approving the operation, subject to a number of constraints, including the sale of assets amounting to 250,000 registrations and measures such as a ban on opening certain courses.
Three Board members had expressed in meetings with lawyers are opposed to the deal and must vote for veto: João Paulo de Resende, Mariana Aguilar and Paul Bunnier. There are still doubts about the vote of Councilman Alexander Lamb, giving mixed signals and you can follow the vote of the rapporteur.
With that, left the vote of Barreto, which, if favorable to the operation, desempatará the score in favour of Kroton. The new President could also ask for views on the process, but it would have to convene an extraordinary meeting for the month of July, since the deadline for examination of operation ends in late July, month in which Cade has no meetings.
The House is still without the full composition. Mauricio Maia was appointed by President Michel Temer, but yet to take possession, which, in theory, could occur before the session today, but there are no plans. "It is very difficult to make any prognosis at the moment," said one lawyer who has followed the negotiations.
Both the rapporteur the counselors had several meetings until this Tuesday with the parties involved. Another possibility would be the counselors can sew with Kroton a de facto agreement to approve the operation, but the assessment is that this scenario is unlikely.
Vetoes. With real chances of not being approved, the merger of Kroton and Statius would be the biggest veto given by Cade since the new competition law, which since 2012, predicts that the operations are notified to the Council previously. The purchase was announced in June last year by $5.5 billion and would create a group with market value of R $30 billion.
Under the new law, the Cade vetoed only five operations, according to a survey done by the Agency at the request of the associated press/Broadcast. Among them are the purchase of petrochemicals Solvay by Braskem for $ $290,000,000, the acquisition of Condor Brushes by Tiger by R $42,000,000 pipes and fittings, and the purchase of assets by BRF Brazil Foods in 2014.
Before the new law, when operations were analyzed by Cade after they have already been made, one of the highest impact vetoes was the purchase of the Boy by Nestlé in 2002. After Cade''s decision, Nestlé appealed to justice and the imbroglio was resolved only 14 years later, with a new decision of Cade.