CADE signs two agreements with Covabra Supermercados

On 2 September, the Administrative Council for Economic Defense (CADE) approved two agreements with Covabra Supermercados Ltda., regarding different transactions that were completed before the antitrust authority’s clearance, a practice known as gun jumping. The cases were reviewed in two administrative procedures to investigate mergers and acquisitions.

Both transactions were notified to CADE after their completion and cleared without restrictions by the Office of the Superintendent General of CADE (SG).

The first agreement concerns Covabra’s acquisition of the assets of a supermarket store in Leme, in the state of São Paulo, which was part of the Rede Local de Produtos Alimentícios EIRELI. In the document, Covabra committed to pay a financial contribution of BRL 189,269.12 to the Brazilian Fund for De Facto Joint Rights (FDD).

The second agreement refers to Covabra’s acquisition of the assets of two supermarket stores in Rio Claro, in the state of São Paulo, part of the Enxuto Supermercados Ltda. In addition, the transaction involved the acquisition of the property where a unit was operated by Covabra’s indirect controlling members, who participated in the agreement as consenting parties.

In this case, Covabra committed to pay a financial contribution of BRL 1,155,038.94 to the Brazilian Fund for De Facto Joint Rights (FDD). The consenting parties took subsidiary responsibility for the payment of the financial contributions amounting to BRL 1,344,308.06.

The Tribunal of CADE unanimously decided to follow the vote of the rapporteur, approving the agreements.