Keywords: CADE, merger review, concentration act, stock-for-stock merger, antitrust

On December 18, 2013, during its 35th Ordinary Judgment Session, the Tribunal of the Administrative Council for Economic Defense ("CADE") approved a request by Commissioner Ana Frazão to extend the term for review of the concentration act no. 08700.005447/2013-12 ("Transaction").

The Transaction involves a stock-for-stock merger that will ultimately unify the activities of two of the biggest players in the upper-education and post-graduation sectors in Brazil and, if consummated, will generate concentration in several markets. During its analysis, CADE's General-Superintendence identified horizontal overlaps in more than 393 relevant markets. For this reason, the authority issued a statement of complexity on October 16, 2013, determining the need to deepen the antitrust analysis.

On December 3, 2013, the General-Superintendence issued Technical Opinion no. 358/2013, challenging the Transaction. The case was subsequently assigned to Commissioner Ana Frazão, who decided to request the 90-day extension of the term for review1, for the first time since Law no. 12,529/2011 came into force. Therefore, the review of the Transaction may take up to 330 days2 to be completed.

Originally published December 20, 2013


1 As provided by article 88, paragraph 9, item II, of the Law no. 12,529/2011.

2 Counted as of the date of the notification of the Transaction.

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