Acquisition of Bertin by JBS is approved with restriction

Cade endorsed yesterday also the acquisition of Bertin, JBS fridge but required monitoring of market conditions.
The incorporation of Bertin, announced in 2009, was deciding factor to transform the refrigerator mostly Baptist family beef producing company in the world.
At the time of acquisition, Bertin was the second company of beef from Brazil, behind the JBS. The JBS institutional relations Director, Francisco de Assis e Silva, stressed that, in addition to the purchase of Bertin, Cade endorsed the acquisition of 11 smaller operations carried out refrigerators by JBS.
The antitrust body also imposed a fine of R $ 7.4 million because the company has not notified the rental operations of some units.
In the understanding of Cade, these operations should have been informed as provided by the Agency. According to the Director of JBS, the agreement with Cade provides that the company did not use this fine. The agreement also provides that JBS should inform the Cade any moving assets, such as lease, rental or purchase, for a period of 30 months. This notification shall be made to the Cade even though it does not falls within minimum standards of financial volume or market share required for an operation through the evaluation of Cade.
According to the antitrust body, the national participation of JBS on slaughter is less than 25%.
However, the Rapporteur of the case, Marcos Paulo Veríssimo Advisor, pointed out that the State of Mato Grosso is one where there is greater market concentration, around 50%.
By analyzing the market power of the undertaking, the Cade said "have not been located indicating exercise of monopsony which would generate the Cade restrictions".
Monopsony represents a market structure that has a single buyer for the products from multiple vendors, which gives advantage to the company at the time of negotiating the purchase.
The concentration of JBS is criticized by the Association of Breeders of Mato Grosso (Acrimat) after local Institute study point out that the company has more than 40% of the slaughter in the State, and this compromises the ability of negotiation of mato-grossenses producers, according to Acrimat.