CADE imposes interim measure to suspend CA Investment's political rights in Eldorado Brazil

On 18 November, the Office of the Superintendent General of CADE (SG) complied with the Eldorado Brazil S.A. appeal for an interim measure against its minority shareholder, CA Investment S.A. The result is the suspension of CA Investment's political rights, including the prohibition to vote in general meetings, among other restrictions.

The SG launched, in October 2024, a preliminary enquiry to investigate alleged antitrust violations by CA Investment in the Brazilian cellulose market. Among the violations investigated, provided in the Brazilian competition law, there is the creation of any difficulties to the proper functioning or development of a competitor.

Based on the preliminary enquiry, the SG adopted an interim measure to protect collective welfare, public interest, and free competition in the cellulose market, considering the alleged antitrust practices of CA Investment. The obstacles to effective competition outlined in the investigation may lead to losses in the cellulose market, resulting in a supply reduction, a price increase, and in an artificial competitive environment.

CADE may adopt interim measures if there is any evidence or a reasonable concern that the company’s actions, directly or indirectly, have caused or may cause harm to the market that is irreparable, difficult to repair, or that renders CADE’s decision ineffective. The SG converted the preliminary enquiry into an administrative enquiry to continue the investigation given the evidence of antitrust violations.

Access case no. 08700.007664/2024-08.