Cade to review the stake acquisition of Webmotors by Carsales

The Administrative Council for Economic Defense (CADE) is to review the acquisition by Carsales of a 70% stake in the company Webmotors. The notice disclosing the transaction was published in the Federal Official Gazette of Brazil on 16 March.

Upon completion of the transaction, Carsales will hold 70% of shares in Webmotors, and Santander Corretora, the remaining 30%.

Carsales is an Australian online automotive, motorcycle and marine classified business that, alongside its subsidiaries, develops technology and advertising solutions that drive its business around the globe. The organisation operates across the Asia-Pacific region and has stakes in automotive classified businesses in Brazil, the United States, South Korea, Mexico, and Chile.

As for the purchaser, Webmotors is a well-positioned player in the market of automobiles classified in Brazil. Therefore, the company aims to diversify the foreign markets in which it operates and increase its stakes in Webmotors, which agrees with the strategy.

Review term According to law, the term for merger review is of 240 days. This legal term may be extendable for additional 90 days based on a duly substantiated decision of the Tribunal of CADE or 60 days upon a request from by parties.

The antitrust authority may assess mergers either as summary cases, considered simpler from a competition point of view, or ordinary cases, which require an in-depth review. The reviews of transactions subject to summary proceedings must be completed within 30 days, according to Resolution no. 33/2022.

Access case no. 08700.001837/2023-95.