CADE approves the sale of properties from União Vopak to Cattalini Terminais Marítimos

The transaction was cleared unconditionally on 22 March

Published in Apr 03, 2023 08:24 AM Updated in Jun 26, 2023 10:08 AM

CADE approves the sale of properties from União Vopak to Cattalini Terminais Marítimos.png

The Administrative Council for Economic Defense (CADE) approved the acquisition by Cattalini Terminais Marítimos of a storage terminal (Terminal II), a car park, and 18 lots held by União Vopak Armazéns Gerais. The transaction involves the market of bulk liquid transportation and storage at the port of Paranaguá, in the State of Paraná.

According to the companies, the transaction offers an opportunity for Cattalini to expand its static capacity for bulk liquid storage. For União Vopak, the transaction is a divestment measure of low-return assets and will yield resources to make its strategic plan feasible.

During the case review, CADE considered Cattalini’s dominant position in this sector, which raised concerns about the possible abuse of its market power to close the markets to potential rivals. However, according to the rapporteur of the case, Commissioner Victor Oliveira Fernandes, it was possible to identify actual conditions for rivalry in the sector.

The commissioner also highlighted in his vote that although the barriers to entry are high in this sector, the barriers to expansion in the market of transportation and storage of unheated edible oils are low. Therefore, the possibility of other companies in the region starting to operate transporting this type of load may exert competitive pressure on Cattalini.

"There is current or potential relevant competitive pressure in the post-transaction scenario, involving bulk liquid transportation in general or edible oils transportation", he stated.

As the dynamic of successive land acquisitions by Cattalini raises concerns relating to competition policy, the company has committed to inform CADE's Office of the Superintendent-General, for the next three years, all future transactions involving the acquisition of assets in the Portuary Interest Zone (ZIP) of Paranaguá Port.

The Tribunal of CADE unanimously cleared the merger unconditionally.

Access Case no. 08700.001197/2022-32.