CADE establishes new rules for merger filings and disciplines the call up procedure

The Tribunal of the Administrative Council for Economic Defense – CADE approved on 1 October 2014 the changes to its internal rules and to Resolution no. 2. The changes result from contributions received in two public consultations held by the agency.

Public Consultation no. 1/2014 referred to Resolution no. 2, which disciplines merger filings. Criteria to calculate turnovers for transactions involving investment funds were established. Furthermore, hypothetical notifications of acquisitions in equity interests and of fast-track cases were specified. Additionally, it was established when titles or securities convertible into shares must be notified.

The changes in CADE’s internal rules result from Public Consultation no. 02/2014 about criteria for the notification of transactions on the stock exchange or organized over-the-counter market, and about detailing the procedure for the Tribunal to call up cases.

The new rules derive from more than two years of enforcement of the new Brazilian Competition Law (Law no. 12.529/2011), and reflect the constant process of practice improvement and review by the authority.

Click here to access Order no. 280/2014, which amends Resolution no. 2 in Portuguese.
Click here to access Order no. 281/2014, which amends the Internal Rules in Portuguese.