CADE unconditionally clears a transaction involving Seara and Bunge

This Wednesday (18 November), the Administrative Council for Economic Defense (CADE) unconditionally cleared a transaction regarding the acquisition by Seara of the mayonnaise and margarine businesses of Bunge. The firm Seara acquired the productive capacity (factories), some product brands and other assets from Bunge through the transaction.

According to the rapporteur commissioner of the case, Sérgio Ravagnani, the transaction does not present competition concerns in any of its field, which are mayonnaise, degummed soybean oil, and margarine. In his review, the rapporteur evidenced that with Seara replacing Bunge it will occur substitution of the economic agent in the mayonnaise market.

As regards the degummed soybean oil market (an input used in the production of margarine and that Bunge is the larger producer in Brazil), Ravagnani highlighted the transaction does not change its market availability. It was evidenced in the case files there are several other suppliers of the product, and many competitors have stated they do not face difficulties to get the oil.

As to the margarine market, the rapporteur found satisfactory rivalry to prevent potential market power by Seara. The review also showed that the transaction will provide positive effects since it will grant more competition to the margarine market and will improve the conditions of product distribution.

The Tribunal of CADE understood the rapporteur's view and decided for the unconditional clearance of the merger and acquisition.

Access the Administrative Proceedings 08700.001134/2020-14.