Power generation companies admit gun jumping

The Tribunal of the Administrative Council for Economic Defense (CADE) unconditionally cleared the agreement in the administrative proceeding involving Illian Energias Renováveis, Solar Irecê, and Solar Irecê 3. On 17 April, the power generation companies signed the document that establishes the payment of a financial contribution to the Fund for De Facto Joint Rights (FDD).

CADE launched the administrative proceeding to investigate Illian Energias Renováveis’ acquisition of the total share capital of Solar Irecê and Solar Irecê 3, without CADE’s previous clearance. On the transaction notification form submitted to the authority, the merging parties admitted that the transaction occurred in September 2021; however, they only notified CADE in February 2023.

According to the Rapporteur Commissioner Diogo Thomson, the practice is considered as gun jumping and may be rendered nullity, fines, and other penalties. “The parties expressed their intention to settle the case with the agreement”, he explained.

Access case no. 08700.001524/2023-37