Decision took place this Wednesday (7) after more than 20 years
The acquisition of Garoto by Nestl Brasil was approved by Cade (Administrative Council for Economic Defense) this Wednesday (7). The agreement provides for some points of attention, whose objective is to preserve competition in the Brazilian chocolate market.
Among the measures is the fact that Nestl does not acquire, during a period of five years, assets that represent, cumulatively, a share equal to or greater than 5% of the market. Another clause is Nestl’s obligation to notify Cade, for a period of seven years, of any purchase of assets that may characterize an act of market concentration.
Also for a period of seven years, Nestl undertakes not to intervene in requests from third parties for the concession of reduction, suspension or elimination of taxes levied on the importation of chocolates, under the terms of Decree 11,428/2023 and Decree 10,242/2020. Finally, Nestl must keep the Garoto factory in Vila Velha (ES) in production for a minimum period of seven years.
Considering the more than 20-year history of this case and the existence of a new antitrust legal framework in the country, the negotiation between Cade and Nestl resulted in an agreement with measures that are proportionate and sufficient to mitigate competitive impacts in the current scenario and guarantee consumers’ interests, said Alexandre Cordeiro, president of Cade.
The purchase of Garota took place in February 2002, but was vetoed by Cade two years later, as the board understood that the purchase would result in a concentration of more than 58% of the market.
At the time, Nestl obtained the right to maintain the operation in court. However, a judicial decision determined that the Administrative Council for Economic Defense rehear the case.
