{"id":16962,"date":"2025-09-08T13:10:03","date_gmt":"2025-09-08T16:10:03","guid":{"rendered":"https:\/\/cmalaw.com\/?post_type=contents&#038;p=16962"},"modified":"2025-09-08T13:12:31","modified_gmt":"2025-09-08T16:12:31","slug":"impacts-of-cades-approval-of-the-brf-marfrig-transaction-on-the-food-and-animal-protein-sector","status":"publish","type":"contents","link":"https:\/\/cmalaw.com\/homolog\/contents\/impacts-of-cades-approval-of-the-brf-marfrig-transaction-on-the-food-and-animal-protein-sector\/","title":{"rendered":"Impacts of CADE\u2019s approval of the BRF\/Marfrig transaction on the food and animal protein sector"},"content":{"rendered":"<p>The Administrative Council for Economic Defense (Cade) approved, last Friday (September 5), the acquisition of BRF by Marfrig, confirming the decision previously issued by the General Superintendence (SG\/Cade).<\/p>\n<p>The judgment issue by CADE\u2019s Rapporteur Commissioner, Gustavo Augusto \u2014 endorsed by the CADE Tribunal by <strong>majority vote<\/strong>\u00a0\u2014 established the key precedent for approving the BRF-Marfrig merger <strong>without restrictions<\/strong>. Core technical grounds included:<\/p>\n<ul>\n<li>Combined horizontal market share below 20%, under the dominance threshold;<\/li>\n<li>In vertically integrated segments, each party held under 30%, minimizing foreclosure risks.<\/li>\n<li>Minerva\u2019s challenge, citing potential governance conflicts due to SALIC\u2019s holdings, was rejected \u2014 the Tribunal deemed the claim extraneous to the transaction under review.<\/li>\n<\/ul>\n<p><strong>Why this matters for companies acting in the sector?<\/strong><\/p>\n<ul>\n<li><strong>Legal certainty &amp; predictability<\/strong>: establishes clear benchmarks (e.g. shares &lt; 20%; vertical integration &lt; 30%) guiding strategic M&amp;A planning in concentrated markets.<\/li>\n<li><strong>Regulatory flexibility<\/strong>: confirms that even substantial deals can be approved unrestricted if backed by thorough technical analysis.<\/li>\n<li><strong>Corporate strategy<\/strong>: signals that horizontal consolidations and vertical integrations in the animal protein and processed food sectors remain viable \u2014 even among large players.<\/li>\n<\/ul>\n<p><strong>What are the impacts of CADE&#8217;s decision on the private practice?<\/strong><\/p>\n<ul>\n<li>The case underscores CADE\u2019s nuanced approach, emphasizing <strong>data-driven assessments and regional-market specifics<\/strong>, paving the way for more tailored decisions.<\/li>\n<li>For antitrust law practitioners, the lesson is clear:\n<ul>\n<li>Develop <strong>solid economic models<\/strong>\u00a0(market share, flow analysis);<\/li>\n<li>Mold narratives around quantitative clarity;<\/li>\n<li>Anticipate governance or shareholder structure critiques.<\/li>\n<\/ul>\n<\/li>\n<li>This decision illustrates a maturing regulatory posture that balances technical rigor with pragmatic enforcement, particularly in globally integrated industries.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/sei.cade.gov.br\/sei\/modulos\/pesquisa\/md_pesq_documento_consulta_externa.php?HJ7F4wnIPj2Y8B7Bj80h1lskjh7ohC8yMfhLoDBLddY91afkDmgkkVgtnTQaRW_TtrkdD61YIJtUbvmMKnoQB_ib_c6kM6nWYJESjawPNNV-tCraeTZxLqMoBEbywfwH\">Learn more<\/a>.<\/p>\n<p>For further information, please contact our partner:<br \/>\n<strong>Luciana Martorano<\/strong><br \/>\n<strong>Antitrust and Competition<\/strong><br \/>\nluciana.martorano@cmalaw.com<\/p>\n","protected":false},"featured_media":16965,"template":"","categories":[],"tags":[],"class_list":["post-16962","contents","type-contents","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/cmalaw.com\/homolog\/wp-json\/wp\/v2\/contents\/16962","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cmalaw.com\/homolog\/wp-json\/wp\/v2\/contents"}],"about":[{"href":"https:\/\/cmalaw.com\/homolog\/wp-json\/wp\/v2\/types\/contents"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cmalaw.com\/homolog\/wp-json\/wp\/v2\/media\/16965"}],"wp:attachment":[{"href":"https:\/\/cmalaw.com\/homolog\/wp-json\/wp\/v2\/media?parent=16962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cmalaw.com\/homolog\/wp-json\/wp\/v2\/categories?post=16962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cmalaw.com\/homolog\/wp-json\/wp\/v2\/tags?post=16962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}