CADE sets record of merger notifications in 2024

The Administrative Council for Economic Defense (CADE) set a record of merger notifications in 2024. Overall, the Brazilian antitrust agency received 712 notifications, an increase of almost 20% compared to 2023.

The transactions reviewed amount to BRL 1.1 trillion. These numbers highlight the economic and strategic relevance of the technical work of the institution to promote competition and analyse the Brazilian markets. 

The sectors that notified most of the transactions to CADE were the electric power generation, oil and natural gas extraction, real state development, and wholesale and retail markets. 

In addition to an increased volume of transactions, the antitrust authority also reduced the average time for merger reviews. In 2023, the average time for ordinary merger reviews was 117 days and, in 2024, it became 93.9 days. CADE reviewed summary mergers in 15.1 days, and the general average time for merger reviews was 21.6 days. 

Ordinary merger reviews must be finished in 240 days after the registration of the notification or amendment. This time limit may be extended for 90 days if the Tribunal of CADE finds necessary and has a reasonable explanation. The time limit to review summary cases is up to 30 days. 

According to Alexandre Barreto, Superintendent General at CADE, the increased number of notifications and reduced time limits for reviews show the efforts of the antitrust agency to make the review process faster and more efficient. “We have one of the shortest time limits for merger reviews in the world and our objective is to optimise them, especially the summary merger reviews, which need faster and more precise actions”, he stated. 

Mr Barreto highlights that the approval of mergers follows a process governed by legislation, which requires the companies involved to hand in documentation. “The more complete and accurate the information provided by the companies is, the faster the review process will be”, he highlighted. 

During the merger review, CADE analyses several aspects, such as the market share of the companies involved, the rivalry among competitors, and other factors related to the sector they operate. 

In 2024, to make the merger reviews even faster, CADE launched the e-Notifica, a digital tool that allows the Office of the Superintendent General at CADE to review summary mergers in record time. The system, along with other public databases, aims to modernise the notification process and guarantee more efficiency in merger reviews. 

One of the main competences of CADE is to analyse the impact of mergers in the Brazilian markets and society, ensuring healthy competition among companies. Mergers are defined as merger transactions among independent companies, acquisitions, consolidations, or joint ventures. 

Companies must notify the transaction to CADE when they have a turnover of more than BRL 750 million for one of the groups involved and BRL 75 million for the other, in the year prior to the transaction.