CADE launches in-depth review of 123milhas' acquisition of Maxmilhas

On 25 July, the Office of the Superintendent General of CADE changed the process of the merger review regarding the acquisition of MaxMilhas by 123milhas. The authority converted the procedure from a summary into an ordinary one because the companies compete in the same market in a rate between 30% to 40%. Consequently, the acquisition would lead to a significant increase in concentration in the Brazilian airline miles market.

In this case, it is necessary an in-depth review of 123milhas' market power to ensure that any potential effects on the market are identified and treated accordingly.

Acquisition - The transaction consisted in the acquisition of 100% of the share capital of MaxMilhas, in 2022.  As a result, the Grupo 123milhas' is currently the only shareholder of MaxMilhas.

CADE determined that the parties must notify the acquisition. However, the companies’ notification of the transaction as summary proceeding, reserved for cases deemed simple, is insufficient due to the complexity of the transaction. Therefore, due to the potential competition harm, the merger case underwent an in-depth review through an ordinary procedure.

CADE has up to 240 days after notification, extendable for another 90 days, to conclude its review. After the review, CADE may decide to clear the transaction unconditionally, clear it subject to remedies, or block it entirely.

Access Case no. 08700.008693/2023-06.