Post by xyz3500 on Feb 21, 2024 23:17:33 GMT -8
The growth of large companies in the value transportation sector through the purchase of companies with regional operations, rather than organically, is worrying. That's why the General Superintendence of the Administrative Council for Economic Defense (Cade) was against the purchase of Tecnoguarda by Brink's. The operation now needs to be judged by the Cade Court. reproduction Cade challenges the acquisition of transport company by Brink's Reproduction Brink's informed Cade that it would acquire Tecnoguarda "restricting itself only to assets relating to the transport and custody of the company's values". "The operation consists of the acquisition of tangible assets (armored vehicles, weapons, etc. and intangible assets (service provision contracts related to the transportation of valuables) in the states of Goiás and Mato Grosso from Tecnoguarda by Brink's", according to the note.
In the document, Cade's general superintendent, Alexandre Cordeiro Macedo, states that "the structure of local markets, like that of the national scenario, has also become increasingly concentrated". "This is the case, including, in the geographic markets specifically affected by the operation, without relevant efficiencies and, ultimately, better Israel Mobile Number List products/services and/or lower prices for consumers having been demonstrated. Some more recent operations analyzed by the Superintendency -General do not present any complementary characteristics, configuring, on the contrary, total overlap between the activities of the acquiring and acquired companies", he said.
Macedo also proposed that the antitrust body evaluate a 'non-acquisition commitment' of competitors with the company, which is one of the three largest in the market, for a period of up to five years. The act of concentration will still be judged by the board's advisors. In July, Cade pointed out that the purchase of part of the Brazilian Tecnoguarda by the American Brink's is a complex deal and, therefore, cannot be approved immediately. Milestone For lawyer specialized in Economic Law José Del Chiaro, the decision by the Cade Superintendence represents an important milestone. "The decision recognizes the large and growing concentration of this market by challenging the operation as presented. The market tests carried out by Cade certainly contributed to this understanding. Market giants told Cade that they had experienced abuses on the part of large transport companies, including recording the abusive practice of non compete", says the expert.
In the document, Cade's general superintendent, Alexandre Cordeiro Macedo, states that "the structure of local markets, like that of the national scenario, has also become increasingly concentrated". "This is the case, including, in the geographic markets specifically affected by the operation, without relevant efficiencies and, ultimately, better Israel Mobile Number List products/services and/or lower prices for consumers having been demonstrated. Some more recent operations analyzed by the Superintendency -General do not present any complementary characteristics, configuring, on the contrary, total overlap between the activities of the acquiring and acquired companies", he said.
Macedo also proposed that the antitrust body evaluate a 'non-acquisition commitment' of competitors with the company, which is one of the three largest in the market, for a period of up to five years. The act of concentration will still be judged by the board's advisors. In July, Cade pointed out that the purchase of part of the Brazilian Tecnoguarda by the American Brink's is a complex deal and, therefore, cannot be approved immediately. Milestone For lawyer specialized in Economic Law José Del Chiaro, the decision by the Cade Superintendence represents an important milestone. "The decision recognizes the large and growing concentration of this market by challenging the operation as presented. The market tests carried out by Cade certainly contributed to this understanding. Market giants told Cade that they had experienced abuses on the part of large transport companies, including recording the abusive practice of non compete", says the expert.