CADE to review the sale of 60% of wholesale chain "Atakarejo"

The Administrative Council for Economic Defense (CADE) is to review the sale of 60% of supermarket retailer "Atakarejo" to Private Equity Holding VII – Omega.

Omega is a non-operating holding company controlled by Pátria Private Equity VII, a private investment fund under the management of Pátria Investmentos. Currently, Omega does not perform any activities nor does it hold stocks in operating companies, while other companies of Pátria VII do not have activities in the self-service wholesale sector. In turn, Atakarejo operates self-service wholesale for end consumers in six cities of the state of Bahia: Salvador, Lauro de Freitas, Alagoinhas, Camaçari, Simões Filho, and Feira de Santana.

According to the form submitted to CADE, the transaction will not raise any competition concerns. The market shares of Atakarejo in the self-service wholesale sector and funds under the management of Pátria Investmentos in adjacent markets are under the parameters that CADE analyses in merger reviews.

Time limit for merger review 

As established by law, the merger review must take no longer than 240 days. The legal time limit is extendable for up to 90 days upon a reasoned decision by the Tribunal or up to 60 days upon request by the parties. 

Mergers can be reviewed as summary cases—when regarded as less complex from a competition point of view—or ordinary—when requiring more in-depth analysis. The assessment of transactions subject to a summary proceeding must be concluded in 30 days as per Resolution no. 33/2022.