Investigative arm of CADE clears Nestlé Brasil’s acquisition of Group CRM

The Office of the Superintendent General (SG/CADE) cleared Nestlé Brasil’s acquisition of Group CRM. The parties notified the transaction to CADE on 18 November 2023.

Nestlé Brasil, a limited liability company part of the Swiss Group Nestlé, offer products in 15 segments of the Brazilian market.

The Brazilian Group CRM is composed by CRM Indústria e Comércio de Alimento, a limited liability company responsible for the industrial activities of the Group CRM and Nibs Participações, a close corporation, owner of the three brands of the group: Kopenhagen, Chocolates Brasil Cacau, and Kop Koffe.

The SG concluded that there is no evidence of Nestlé exercising market power after the transaction in five Brazilian markets with horizontal overlap. In addition, the parties have no ability or incentive to close the markets vertically related. Therefore, the transaction does not raise any competition concerns.

It is important to mention that the completion of the transaction is under the limitations of the Merger Control Agreement, signed between CADE and Nestlé. For a period of five years from the signature of the agreement, the company agreed not to acquire any assets (such as brands, sets of brands, or companies) which represent, cumulatively, a market share of 5% or more—measured by the turnover in the year before each transaction—of the Brazilian relevant chocolate market, according to the market analysis of Nielsen.

The decision of the Office of the Superintendent General of CADE is regarded final and the deal fully approved if the authority's Tribunal does not request the case for adjudication or a third party does not appeal to the ruling within 15 days of its announcement.

Access Merger no.08700.008181/2023-31.