CADE orders group in the automobile sector to notify transactions

On 26 February, the Administrative Council for Economic Defense (CADE) ordered the company Mais Distribuidora de Veículos and its economic group, Grupo Sinal, to notify within 30 days the mergers in which it is involved.

The authority launched an administrative procedure based on a complaint submitted in 2019 and forwarded to the Office of the Superintendent General at CADE.

After questioning, Grupo Sinal informed the existence of 14 different mergers between 2010 and 2020. The majority of the transactions involved the sale and acquisition of tangible and intangible assets, in addition to the acquisition of warehouse stocks, furniture, commercial representation of motor vehicles’ brands, among others.

After the analysis, the rapporteur of the case considered that some of these transactions do not need to be notified, which is why there is no need for a merger review. However, some of the transactions mentioned do need to be notified. Thus, CADE determined the companies involved to do it within 30 days starting from the publication of the decision in the Brazilian Federal Gazette.

According to the rapporteur of the case, Commissioner Carlos Jaques, each of the companies are subject to pay  BRL 5 thousand per day in case of non-compliance to each transaction that is not notified in time. 

In this context, the Tribunal of CADE followed the vote of the rapporteur and determined unanimously to suspend the fine provided in Article 88, Paragraph 3, of Law 12529/2011, until there is a final decision on the mergers of the case.